The AI War: DeepSeek's Open-Source Revolution Vs OpenAI's Cash Grab

it's been two years now since Ai narrative arrived and market started a bullish trend, I still remember the time when OpenAi launched ChatGPT

Back then ChatGPT was the fastest growing up and ever since then Nvidia, OpenAi are two Ai giants creating more and more hype around this narrative

But only Nvidia is clearly one Ai giant doing something extra ordinary while I believe OpenAi is after the money, they want to make as much as they can with the hype

And we have seen it now after Deepseek arrived in the market.

We're seeing the Ai war happening Infront of our eyes, who's going to progress and lead AGI? US or china? It's already something investors are scared after watching Deepseek performance with the amount and team they've compared to Openai.

I'll talk about this situation and some facts you need to know ahead in this blog so let's get started.

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OpenAi Vs deepSeek: Open Source Ai competing against established Ai giant?

It took openAi about 10 years to launch chatGPT, train it and just recently Sam Altman said we're far from AGI and it'll take years

But after DeepSeek becoming a talk of the town Sam Altman changed his opinion about AGI

Trying to bring some more money from "buy our premium version" to use 03 for this and this

But than deepSeek being Open-Source changed the whole thing like it's completely free, anyone can build, train

And deepSeek is running on less expensive chips, no supercomputer and guess what people who used to spend money to run openAi models are doing it for free on Deepseek.

deepSeek only cost them $6m while OpenAi is raising Billions

There's a reason why investors are exiting the market after Deepseek burst and it's because OpenAi like Ai company have lured in funds money because of the hype

like US got $500b in investment for Ai that involves openAi in project and than Deepseek only cost them $6 million to become as good as openAi model.

It's so obvious why US stock market has seen more than a trillion dollar wipeout from market in a day

When there's giant like openAi bagging Billions asking "it's too costly to train Ai or run it" Give me $7 trillion dollar to scale their Ai

It's obvious investors know they're in a bubble

Incase you don't know back in the beginning of last year Sam Altman made a tweet where he said "he's seeking for at least $7 trillion dollar to reshape Ai and chip business"

It's all on internet you can still look it up, OpenAi went from nonprofit to "securing the profits" and prioritising money

So an Open Source Ai with just under $10m is running as better or close to openAi is obviously the big slap on Sam Altman and OpenAi.

OpenAi have about 4000 employees, Deepseek just under 200, 6 million is all it took to build Deepseek While $6.6b raised by openAi.

Nvidia isn't in Trouble, OpenAi is

We've seen the biggest one day stock crash since the COVID and it happened with Nvidia as it took -17% dip

More than -500B wiped out from the company just because of Deepseek "doesn't need Nvidia expensive GPU or supercomputer to run"

But Nvidia has responded that there's only one way to train and run Deepseek and it'll be with their chips

Nvidia isn't the bubble in question, OpenAi is

And I won't be surprised if Sam Altman steps down soon or OpenAi collapse or become dust causing more pain in the Ai market.

The bloodbath in US stock market is scary and happened once again because of china doing something extra ordinary and in better way than US.

So it's just going to take a while till this dust settles, there's already a ddos attack on Deepseek which caused problems and downtime

But during that time they launched another version that allows to create Ai image

So it's just making things serious and Ai companies will have to come upfront, explain why they're doing it costing them billions while someone can do the same thing on the same scale in millions.

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Wrapping Up...

In the end we all are here witnessing two nations fighting for Ai, AGI and LLms so be ready for the more drama in coming days.

Fomc in two days, new moon just before end of January so things are looking quite bad

But again I believe we'll continue uptrend in the second week of February.

For now I want Deepseek to win because it's Ai for people, by the people while OpenAi is onto some serious cash grabbing scam. I wonder what's your thoughts are about it and how do you see this entire situation, do share your opinions in the comments.