Episode Details

Hey folks, Alex here 👋

It’s official—grandmas (and the entire stock market) now know about DeepSeek. If you’ve been living under an AI rock, DeepSeek’s new R1 model just set the world on fire, rattling Wall Street (causing the biggest monetary loss for any company, ever!) and rocketing to #1 on the iOS App Store. This week’s ThursdAI show took us on a deep (pun intended) dive into the dizzying whirlwind of open-source AI breakthroughs, agentic mayhem, and big-company cat-and-mouse announcements. Grab your coffee (or your winter survival kit if you’re in Canada), because in true ThursdAI fashion, we’ve got at least a dozen bombshells to cover—everything from brand-new Mistral to next-gen vision models, new voice synthesis wonders, and big moves from Meta and OpenAI.

We’re also talking “reasoning mania,” as the entire industry scrambles to replicate, dethrone, or ride the coattails of the new open-source champion, R1. So buckle up—because if the last few days are any indication, 2025 is officially the Year of Reasoning (and quite possibly, the Year of Agents, or both!)

Open Source LLMs

DeepSeek R1 discourse Crashes the Stock Market

One-sentence summary: DeepSeek’s R1 “reasoning model” caused a frenzy this week, hitting #1 on the App Store and briefly sending NVIDIA’s stock plummeting in the process ($560B drop, largest monetary loss of any stock, ever)

Ever since DeepSeek R1 launched (our technical coverate last week!), the buzz has been impossible to ignore—everyone from your mom to your local barista has heard the name. The speculation? DeepSeek’s new architecture apparently only cost $5.5 million to train, fueling the notion that high-level AI might be cheaper than Big Tech claims. Suddenly, people wondered if GPU manufacturers like NVIDIA might see shrinking demand, and the stock indeed took a short-lived 17% tumble. On the show, I joked, “My mom knows about DeepSeek—your grandma probably knows about it, too,” underscoring just how mainstream the hype has become.

Not everyone is convinced the cost claims are accurate. Even Dario Amodei of Anthropic weighed in with a blog post arguing that DeepSeek’s success increases the case for stricter AI export controls.

Public Reactions

* Dario Amodei’s blogIn “On DeepSeek and Export Controls,” Amodei argues that DeepSeek’s efficient scaling exemplifies why democratic nations need to maintain a strategic leadership edge—and enforce export controls on advanced AI chips. He sees Chinese breakthroughs as proof that AI competition is global and intense.

* OpenAI Distillation EvidenceOpenAI mentioned it found “distillation traces” of GPT-4 inside R1’s training data. Hypocrisy or fair game? On ThursdAI, the panel mused that “everyone trains on everything,” so perhaps it’s a moot point.

* Microsoft ReactionMicrosoft wasted no time, swiftly adding DeepSeek to Azure—further proof that corporations want to harness R1’s reasoning power, no matter where it originated.

* Government reactedEven officials in the government, David Sacks, US incoming AI & Crypto czar, discussed the fact that DeepSeek did "distillation" using the term somewhat incorrectly, and presidet Trump was asked about it.

* API OutagesDeepSeek’s own API has gone in and out this week, apparently hammered by demand (and possibly DDoS attacks). Meanwhile, GPU clouds like Groq are showing up to accelerate R1 at 300 tokens/second, for those who must have it right now.

We've seen so many bad takes on the topic, from seething cope takes, to just gross misunderstandings from gov officials confusing the ios App with the OSS models, folks throwing conspiracy theories into the mix, claiming that $5.5M sum was a PsyOp. The fact of the matter is, Dee