Also shows those AI companies never had a moat outside of ensuring it is too cost-prohibitive for competitors to train a model. US export bans forced researchers around the world to be smarter instead of just scaling up, and the outcome is honestly hilarious to me. www.cnbc.com/2025/01/27/n... - ThreadSky

ramiismail.com • 27 days ago

Also shows those AI companies never had a moat outside of ensuring it is too cost-prohibitive for competitors to train a model. US export bans forced researchers around the world to be smarter instead of just scaling up, and the outcome is honestly hilarious to me.

https://www.cnbc.com/2025/01/27/nvidia-falls-10percent-in-premarket-trading-as-chinas-deepseek-triggers-global-tech-sell-off.html

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joocifer.bsky.social•27 days ago

This means that Nvidia CEO will have to stop wearing cool dark leather coats for a while to regain traditional investor confidence

takeshino.art•27 days ago

I still don't quite understand how NVIDIA is supposed to be directly hurting from this as a hardware provider - if those models are now faster to run that just means it'll just do things faster, which is normally good, right?

Unless it's supposed to be a matter of them losing potential customers?

ramiismail.com•27 days ago

The US government basically gave NVIDIA a global lead by prohibiting all sorts of transactions and exports to China, so the researchers in China had to figure out how to do this without advanced tech. Now NVIDIA makes advanced tech at a scale that seems utterly useless for purpose.

issork.de•27 days ago

It's the other AI companies losing their market share and thus being less likely to buy NVIDIA hardware. And if the model runs faster, less hardware will be required.

thetedroberts.bsky.social•26 days ago

themudman.bsky.social•27 days ago

That and the hope that fearmongering about completely unproven capabilities would trigger additional regulations that would keep competitors away.

We'll see if the whole thing snaps back to reality long-term.

themudman.bsky.social•27 days ago

I've always been in this awkward middle ground where I find chatbots and image gen fun to mess with and only very occasionally actually useful.

The entire furore from every side looks pretty silly from over here, but maybe I'm the dumb one. I sure made less money out of it than Nvidia.

lockfarm.bsky.social•27 days ago

I have a big bucket of popcorn waiting.

prisoner187.bsky.social•27 days ago

Man now I've to change a plot point in my short story. Best news in a while. 😂😂

jchmoe.bsky.social•27 days ago

My fear is that people see this as affirmation to invest even more into AI, seeing that it *can* be cost-effective to put a virtual dumbass in every app and make the internet and society objectively worse.

cgy1015.bsky.social•27 days ago

I’ll be there for the downfall

mikegarry.bsky.social•27 days ago

Not long before they come crawling back to gamers and developers - hey guys, we always loved you! What do you mean you refuse to pay 2 grand for a 5090?

😂

dogdisruption.bsky.social•27 days ago

My deep suspicion about a lot of tech startups is that they’re just fishing for investment capital to funnel into big paydays for themselves while the getting looks good. Doesn’t help how difficult it is to actually make any headway against all the established software products. (See: Adobe.)

thomasfuchs.at•27 days ago

dogdisruption.bsky.social•27 days ago

Look, I think recent years have demonstrated that the obvious can’t be stated enough times. Also I’m only half awake.

akdot98.bsky.social•27 days ago

This is pretty much all tech, to be honest. All the big boys like Msoft and Google tripping over themselves to force AI are doing it too. Find a new tool that's hot, use the clout of that tech to drive investment from people who don't know/care what it does, layoffs/golden parachutes when it fails.

radioactivejawa.bsky.social•27 days ago

I briefly worked for one and that's exactly it.

dogdisruption.bsky.social•27 days ago

Not saying there aren’t a lot of true believers starting these companies but it’s sort of a circular logic where they believe in it in part because that’s the trend that gets funding.

hadesdogwalker.bsky.social•27 days ago

This is absolutely the motivation for 90% of startups.

der2doug.bsky.social•27 days ago

I'm so happy for them. Couldn't happen to worse people 🥰

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