Chinese Startup Humiliates OpenAI
45sThe shocking claim of matching GPT-4 at one-tenth the cost creates immediate curiosity and controversy.
▶ Play Clip"Title accurately reflects the comparison test, though 'shocked' is slightly exaggerated."
A tiny Chinese startup, DeepSeek, has built a model matching GPT-4's performance at one-tenth the training cost and offers it for free. This video tests DeepSeek V3 against GPT-4o to see if free AI can be better.
DeepSeek uses a Mixture of Experts (MoE) architecture with 64 specialized experts, activating only 2 per query, saving computational power.
DeepSeek's efficiency undercuts OpenAI's $20/month subscription model, potentially making paid AI obsolete.
DeepSeek generated a working Python snake game 20% faster than GPT-4o, with zero errors on first try, while GPT-4o had a syntax error.
DeepSeek correctly answered that drying 10 shirts takes 4 hours (simultaneous event), showing contextual understanding.
In 5 out of 7 logic tests, DeepSeek matched or beat GPT-4o, demonstrating sophisticated reasoning.
DeepSeek's free model forces OpenAI and Google to lower prices or improve, benefiting consumers.
DeepSeek proves that high-quality AI can be free and open-source, challenging the paid AI model and benefiting all users through competition.
What architecture does DeepSeek use?
Mixture of Experts (MoE) with 64 specialized experts.
00:49
How many experts are activated per query in DeepSeek?
Two experts are activated per query.
01:18
In the coding test, which model generated a working snake game faster?
DeepSeek generated the code 20% faster than GPT-4o.
03:04
What was the result of the reasoning test about drying shirts?
DeepSeek answered 4 hours, understanding that drying is simultaneous.
04:48
How many logic tests did DeepSeek match or beat GPT-4o?
5 out of 7 logic tests.
05:34
Mixture of Experts Explained
Clear analogy comparing monolithic model to specialized team, making complex concept accessible.
00:49Threat to Paid AI
Highlights the economic disruption potential of efficient open-source models.
01:42DeepSeek Outperforms in Coding
Demonstrates practical superiority in speed and reliability over GPT-4o.
03:04Contextual Reasoning Success
Shows ability to understand real-world context, a key AI milestone.
04:48Competition Benefits All
Frames DeepSeek's success as a win for consumers, forcing price drops.
05:51[00:00] A tiny Chinese startup just humiliated
[00:02] OpenAI. They built a model that matches
[00:04] GPT4's performance. But here is the
[00:06] crazy part. They did it for onetenth of
[00:09] the training cost and they are giving it
[00:10] away for free. Is the era of paid AI
[00:13] over? Today we put Deepseek V3 to the
[00:17] test to see if free finally means
[00:18] better. Before we dive into the tests,
[00:20] [music] it's crucial to understand what
[00:22] makes Deepseek so different. In a world
[00:25] flooded with AI models that are
[00:27] essentially variations on a theme,
[00:29] DeepSeek [music] broke the mold. This
[00:31] isn't just another copycat trying to
[00:33] chase GPT4's [music]
[00:34] tail. They fundamentally rethought the
[00:37] architecture from the ground up, leading
[00:39] to a breakthrough in [music] efficiency
[00:40] and power. The secret source, it's a
[00:44] concept that's been around for a while,
[00:45] but has only recently been perfected.
[00:47] They're using a sophisticated
[00:49] architecture called a mixture [music] of
[00:50] experts ore.
[00:53] To understand why this is a gamecher,
[00:55] imagine a traditional model like GPT4 as
[00:58] one giant monolithic brain. It's
[01:01] incredibly powerful, but it's also
[01:02] incredibly [music] expensive. Every time
[01:04] you ask it a question, no matter how
[01:06] simple, [music] the entire massive brain
[01:09] has to power up and process it.
[01:11] Deepseek, on the other hand, is like a
[01:13] team of 64 highly specialized experts.
[01:16] When you ask a coding question, [music]
[01:18] a smart routting network instantly
[01:20] identifies the two best experts for the
[01:22] job, say the Python Pro and the [music]
[01:24] Algorithm Ace, and only wakes them up.
[01:27] The other 62 experts remain dormant,
[01:29] [music] saving an immense amount of
[01:31] computational power. This makes it not
[01:33] just faster, but radically [music]
[01:35] cheaper to train and run. We're talking
[01:37] about achieving top tier performance
[01:39] while using only a fraction of the
[01:41] computational resources.
[01:42] >> [music]
[01:43] >> This efficiency is what should be
[01:44] terrifying for big tech. Think about it.
[01:47] If [music] Deep Seek can offer this
[01:49] level of intelligence for mere pennies
[01:51] on the dollar through an API, [music]
[01:52] why would anyone continue to pay a
[01:54] premium? Open AAI's entire $20
[01:58] subscription model, which subsidizes
[01:59] [music] the immense cost of their giant
[02:01] brain, is suddenly on very shaky ground.
[02:05] This isn't just a new competitor. It's a
[02:07] potential extinction level event for the
[02:09] old way of doing AI. Talk is [music]
[02:11] cheap. Let's put these models to the
[02:13] test with a realworld coding challenge.
[02:16] On one [music] side, we have the
[02:17] reigning champion GPT40. On the other,
[02:20] the Challenger [music] Deep Seek Coder
[02:22] V2. This isn't just any model. It's an
[02:25] open-source [music] mixture of experts
[02:27] model trained on a colossal two trillion
[02:29] tokens of code and natural language. It
[02:32] boasts [music] top scores on benchmarks
[02:34] like human eval
[02:37] claiming to rival proprietary models at
[02:39] [music] a fraction of the cost. But
[02:41] benchmarks are one thing. Practical
[02:43] application is another. So [music] I
[02:45] asked both to write a Python script for
[02:47] a classic snake game using the Pi game
[02:49] library. To make it interesting, I added
[02:52] a twist. The snake must speed up every
[02:54] [music] time it eats an apple. This
[02:56] tests not just basic code generation,
[02:58] but [music] also state management and
[03:00] logical implementation.
[03:02] Right away, Deepseek's performance was
[03:04] [music] impressive. It generated the
[03:06] complete functional code about 20%
[03:08] faster than [music] GPT40.
[03:11] For developers, that speed translates
[03:13] directly [music] to productivity,
[03:15] enabling faster iteration and problem
[03:17] solving. But speed is meaningless if the
[03:19] code is broken. So the real question is,
[03:22] [music] does it actually work? And the
[03:24] answer is a resounding yes. Deepseek's
[03:27] [music] code ran perfectly on the very
[03:29] first try. Zero errors, zero debugging.
[03:33] GPT40, however, stumbled. It missed a
[03:36] crucial [music] variable definition,
[03:37] throwing a syntax error that broke the
[03:39] program. I had to go back and prompt it
[03:42] a [music] second time to get a working
[03:43] fix. This initial test highlights a key
[03:46] difference reliability.
[03:48] While both models eventually produce the
[03:50] correct [music] code, Deepseek delivered
[03:52] a flawless solution faster and on the
[03:55] first attempt. [music] For any developer
[03:57] on a deadline, that's a gamecher in this
[04:00] round. [music]
[04:01] Deepseek isn't just a contender. It's
[04:03] looking like the new heavyweight
[04:04] champion of coding. Now for the second
[04:06] test, reasoning and logic. This is where
[04:09] many models, especially earlier
[04:11] open-source ones, fall flat. They can
[04:13] perform complex calculations, but often
[04:16] miss the simple realworld context
[04:18] [music] that humans grasp instantly.
[04:20] This is a crucial hurdle for AI to
[04:22] overcome if it's going to be genuinely
[04:24] useful. So, I set a classic logic trap
[04:27] to see if Deep [music] Seek could think,
[04:29] not just calculate. I asked, "If I dry
[04:33] five shirts in the sun and it takes 4
[04:35] [music] hours, how long does it take to
[04:36] dry 10 shirts?" The trap is obvious. A
[04:40] purely mathematical brain might double
[04:42] the time to 8 hours. It's a simple
[04:44] question, but it's a fantastic test for
[04:46] [music] contextual understanding.
[04:48] Deep Seek answers 4 hours. It
[04:51] immediately understands that drying is
[04:53] [music] a simultaneous event. The shirts
[04:55] all dry together, so adding more shirts
[04:57] doesn't extend the time, assuming you
[04:59] have enough space. [music] This ability
[05:01] to handle nuance and implicit
[05:03] assumptions is incredibly impressive.
[05:05] It's a sign of sophisticated training on
[05:07] diverse, highquality data. This isn't
[05:10] just a one-off trick. [music] This
[05:12] reasoning power extends across the
[05:14] board. In my tests, it excelled at
[05:16] debugging code, planning multi-step
[05:18] projects, and even breaking down complex
[05:20] scientific concepts. [music]
[05:22] It feels far less robotic than other
[05:24] open-source models. It's not just
[05:26] regurgitating [music]
[05:27] data. It's connecting dots and
[05:29] demonstrating genuine problem-solving
[05:31] [music] skills. In fact, in five out of
[05:34] the seven logic and reasoning tests I
[05:35] ran, it either matched or outright beat
[05:38] the current [music] industry leader, GPT
[05:40] 40. That is a monumental achievement for
[05:43] a model that's completely open- source.
[05:46] And remember [music] the best part, you
[05:47] aren't paying a single cent for this
[05:49] level of intelligence. Why does this
[05:51] matter if you aren't a [music]
[05:52] developer? Because of competition. For
[05:55] the last 2 years, we accepted that smart
[05:57] AI costs $20 [music] a month. Deep Seek
[06:01] just proved that intelligence is
[06:02] becoming a commodity like electricity.
[06:04] It's getting cheaper every day. This
[06:07] forces Open AAI and Google to either
[06:09] lower their prices or release something
[06:11] significantly better. Either way, we
[06:14] win. One caveat. This is a Chinese
[06:17] model. If you are working on top secret
[06:19] [music] government data, maybe stick to
[06:21] local models. But for learning, coding,
[06:24] and general tasks, [music] it's a
[06:25] no-brainer. If you want to run AI
[06:28] completely privately on your own
[06:29] computer, check out this tutorial next.
[06:32] The revolution is open source.
⚡ Saved you 0h 06m reading this? Transcribe any YouTube video for free — no signup needed.