I always have this debate with my oldest son Beau, he’s young and from time to time he gets a little bit emotional especially on the political side. But I tell him when you’re trying to figure something out follow the money! Recently, we saw a big sell off in the AI space regarding a Chinese company called DeepSeek. DeepSeek provided recent test where they can do AI computing for a fraction of the cost that’s currently going on in the United States of America. If true, this is a very big deal not only to the efficiency of AI but the amount of energy that is currently projected to use with current formats. Chips take a lot to compute, which in return uses a lot of energy. If someone can do this deal with a third of the horsepower that’s a very big deal. Now there is some skepticism about how many chips from NVIDIA that they did use. And is it possible to be efficient as they claim? Only time will tell.
Reason for skepticism, first you’re dealing with a communist country and the Chinese government. Not trying to be political or negative, but it is ironic that all this information started flowing out on January 20th which happened to be inauguration day in the United States. In modern times probably no one has been more disruptive than Donald J Trump to the modern way of thinking. He understands where the money is flowing and how important capital is and the investments behind them. The Chinese are very bright as well and are a little tired of the tail being waged in their face. If DeepSeek is really everything they’re claiming to be it will allow more folks at lower costs access to AI intelligence.
Just a side note the real advantage of AI intelligence is to let everyone know consumers behavior and direct sales towards that behavior. If you know your target audience that’s a big accomplishment for any company. All this takes lots of space, and plenty of energy. Remember to follow the money. It’s no accident that Elon Musk, Mark Zuckerberg and Jeff Bezos are now cozied up to the president of the United States. Six years ago, they may have been the king of EVs and now they’re the king of the data centers. And data centers take energy and Donald J trump can provide it. That is our competitive advantage, and the Chinese know this. So, anything that changes that narrative although it will be an improvement on access to AI will be extremely disruptive. Let’s see how it plays out
By Justin W Nichols
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