Chinese Startup Humiliates OpenAI
45sThe shocking claim of matching GPT-4 at one-tenth the cost creates immediate curiosity and controversy.
▶ Play ClipA 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.
"Title accurately reflects the comparison test, though 'shocked' is slightly exaggerated."
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.
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