DeepSeek and the $5 Million AI Revolution: Are We All Just Stupid? | ✉️ #62

Illustration of a person with glasses and beard on a background with paper planes. Text reads "MKDEV DISPATCH #62. DEEPSEEK AND THE $5 MILLION AI REVOLUTION: ARE WE ALL JUST STUPID?" Illustration of a person with glasses and beard on a background with paper planes. Text reads "MKDEV DISPATCH #62. DEEPSEEK AND THE $5 MILLION AI REVOLUTION: ARE WE ALL JUST STUPID?"

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Over the past few days, we've all read about DeepSeek and how, in just two weeks, China has shaken up the AI market. The narrative is everywhere: how Goliath has lost another battle, how a "decent" AI model can be built with just $5 million, and how the established giants might not be as invincible as they seemed.

You'll hear claims that DeepSeek used OpenAI models to cut training costs, that they're using different chips than they publicly admit, or that they spent far more than the declared $5 million. But regardless of the speculation, one thing is painfully clear: we’ve been fools.

The AI Illusion: Are We Betting on the Wrong Things?

The entire industry seems to believe that progress in AI requires burning trillions of dollars—yet we’re still stuck with models that hallucinate daily, struggle to truly understand human intent, and merely mimic a fraction of the human brain.

Why, then, are companies shaping their entire IT policies around how many billions they'll pour into AI next year? Why are we treating primitive AI models as if they are final, untouchable solutions when we are still at the infancy of AI?

And then, there’s NVIDIA—losing 17% of its market value simply because another company built an AI model. Why? Because we all bought into the belief that you need to spend every last dollar on Earth to train a competitive AI. That you need to consume endless energy to keep up. That you need to sacrifice everything to stay ahead. And for what?

DeepSeek's Lesson: Stop Being Stupid

DeepSeek is here to prove us wrong. To show us that the AI arms race isn’t about throwing insane amounts of money at a problem but about being smart.

Will we learn anything from this? Probably not. Because, after all, we’re human.


What We've Shared

And on the website we have two new articles:


What We've Discovered


The 63rd mkdev dispatch of the year will arrive on Friday, February 14th. See you next time!