What has wallstreet in a panic is not just that #DeepSeek was built for a fraction of the cost, but that it can run locally.
Because the money was never in the AI models themselves, but in the computational power and infrastructure required to run those models.
If anyone can run a ChatGPT-comparable model on an M3 Macbook Pro, then where's the business model?
We're back to one-and-done software purchases, and that's horrible news for the corps spending hundreds of billions on infrastructure.
It's never been about the AI models because that's not where the money is
The money is in selling companies expensive computational power through bloated bundling services with hard to understand egress fees. The money is in shoehorning Internet-tethered chatbots into all of our productivity apps, then increasing our subscription fees by 20%.
The money is in the cloud. Without it, The Made in The USA business model for selling you artificial intelligence simply doesn't work.
I remain convinced it's not even about the money, at the end of the day. Those data centers and all this language crunching are about surveillance and signal jamming, only way something this useless and unprofitable ever got invested in so heavily is if it's a weapon.
@fromjason A very good explanation of the "don't sell a product, sell a service" business path.