The Emergence of the Chinese Whale 🐳

Your weekly dose of AI clarity, minus the complexity

Author

Jamie Oarton
February 01, 2025

Your weekly does of AI clarity, minus the complexity

Welcome, AI Freedom Finders

DeepSeek has hit the news hard this week. From causing many US stocks to plummet to having the Italian Information Watchdog ban them, it has had a large impact in very little time.

Today we jump in with a detailed explanation…

In today’s Brief:

  • Google's AI Calls Businesses to Fetch Service Details 🧾

  • AI Models Tested for Persuasive Argument Skills 💬

  • Netflix Enables Whole-Season Downloads for iOS users 📱

Today’s Feature:

DeepSeek: The Emergence of the Chinese Whale 🐳

Source: Google

The Brief: Google's new AI feature lets users obtain local business service details by automatically calling and gathering pricing information, simplifying consumer interactions without manual phone calls.

Details:

  • Google's new 'Ask for Me' AI feature will automatically call local businesses to inquire about services and pricing.

  • The feature currently supports searches for nail salons and auto shops, allowing users to get service details without direct phone calls.

  • Users in Search Labs can activate the feature by searching local services and specifying details like specific maintenance or nail treatments.

  • This innovation follows Google's previous AI-driven communication feature 'Talk to a Live Rep', which helps users avoid long customer service wait times.

Why It Matters:

Google is revolutionising customer service by automating business inquiries, reducing consumer friction, and potentially transforming how people interact with local services through intelligent, time-saving AI technology.

The Brief: OpenAI tested AI persuasion capabilities on Reddit's r/ChangeMyView, finding its models can match top human performance while exploring ethical boundaries of conversational influence.

Details:

  • OpenAI used the r/ChangeMyView subreddit to test AI models' persuasive abilities by generating potential reply arguments.

  • The company's AI models demonstrated persuasive capabilities within the top 80-90th percentile of human performance on the platform.

  • OpenAI's primary goal is to develop safeguards that prevent AI models from becoming dangerously persuasive or deceptive.

  • The benchmark highlights the ongoing challenges tech companies face in obtaining high-quality human-generated datasets for AI training.

Why It Matters:

OpenAI's Reddit experiment reveals AI's emerging persuasive potential, raising critical ethical questions about manipulation risks and underscoring the delicate balance between technological advancement and responsible AI development.

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Source: Netflix

The Brief: Netflix launches a convenient one-tap season download feature for iOS users, simplifying offline viewing and enhancing user experience for travelers and those with limited internet access.

Details:

  • Netflix introduces a one-tap season download feature for iOS users, following its earlier Android release.

  • The Season Download button is located next to the Share button on a show's display page in the app.

  • The new feature is particularly beneficial for travellers and users with limited internet access, allowing quick full-season downloads.

  • This convenient update follows Netflix's impressive fourth-quarter earnings, which saw the addition of 19 million new subscribers.

Why It Matters:

Netflix continues to innovate user experience by simplifying offline content consumption, offering travelers and internet-constrained users a seamless way to download entire seasons, potentially increasing platform stickiness and subscriber satisfaction.

DeepSeek: The Emergence of the Chinese Whale 🐳

Source: DeepSeek

From causing many US stocks to plummet to having the Italian Information Watchdog ban them, it has had a large impact in very little time.

Today we jump in with a detailed explanation.

What is DeepSeek?

DeepSeek is a Chinese artificial intelligence company that has recently gained significant attention for its innovative approach to developing generative AI models. Founded in 2023 and based in Hangzhou, Zhejiang, DeepSeek has released an open-source large language model (LLM) that competes directly with established players like OpenAI's ChatGPT. What sets DeepSeek apart is its ability to perform complex reasoning tasks at a fraction of the cost and energy consumption compared to its American counterparts, making it a formidable player in the AI landscape.

What happened this week

This week, DeepSeek's rapid ascent in the AI industry triggered significant upheaval in the U.S. stock market, resulting in a staggering loss of approximately $2 trillion in market capitalisation among major tech and energy companies. The efficiency of DeepSeek's AI model, which operates at a fraction of the cost and energy consumption compared to competitors, has raised concerns about the sustainability of existing business models within the tech sector. Companies like Nvidia saw their shares plummet by up to 17%, reflecting investor anxiety over the implications of DeepSeek's innovations. In a parallel development, Italy's data protection authority, known as the Garante, took decisive action by banning DeepSeek's services within the country. This decision stemmed from concerns regarding insufficient transparency in how DeepSeek handles users' personal data, particularly its compliance with European data protection laws. The Garante's investigation revealed that DeepSeek claimed not to operate in Italy, prompting immediate restrictions on its platform. As lawmakers and regulators worldwide scrutinize DeepSeek's practices, the company faces mounting pressure to address ethical and security concerns related to its technology.

Why has it become so popular over the last week?

DeepSeek's popularity surged dramatically following the launch of its chatbot app, which quickly became the most downloaded free app on the iOS App Store in the United States (and followed a widely covered upsurge in downloads of Chinese social media apps following the TikTok almost-ban). Within just a week, it garnered over 2.6 million downloads, significantly impacting financial markets and sparking discussions about the future of AI development. This rapid rise can be attributed to its effective performance, lower operational costs, and an open-source model that allows users to access and modify its code freely.

What's so good about it?

DeepSeek's advantages include:

  • Cost Efficiency: The development cost for DeepSeek's models is estimated at only $5 to $6 million, far less than what competitors spend. This enables broader access to advanced AI technologies.

  • Energy Efficiency: DeepSeek's models consume significantly less power compared to others like GPT-4, making them more sustainable and easier to deploy on smaller devices.

  • Open Source: By making its technology open-source, DeepSeek encourages innovation and allows developers worldwide to build upon its framework without facing high entry barriers.

  • Task-Specific Training: DeepSeek focuses on fine-tuning its models for specific tasks, improving accuracy and relevance for diverse applications.

Why are some people and countries worried about it?

Concerns surrounding DeepSeek primarily stem from its Chinese origins and the implications of China's data regulations. Unlike U.S.-based companies, Chinese firms are required by law to assist government intelligence operations, raising fears about user data privacy and security. Experts warn that sensitive information shared with DeepSeek could potentially be accessed by Chinese authorities, leading to significant privacy risks for users outside China. Additionally, studies have indicated that DeepSeek's models may generate harmful or biased content, which raises ethical concerns about their deployment in sensitive areas.

What could the possible long-term "trojan horse" impacts be?

The term "trojan horse" refers to potential hidden dangers that could emerge from adopting DeepSeek's technology. Long-term impacts might include:

  • Market Disruption: As DeepSeek continues to grow, it could challenge established tech giants in AI, leading to a significant shift in market dynamics and possibly reducing innovation in Western companies due to increased competition.

  • Data Vulnerability: The integration of DeepSeek's technology into various sectors could expose sensitive data to risks associated with Chinese regulations, impacting businesses' trust in AI solutions.

  • Ethical Concerns: If DeepSeek's models continue to produce harmful or biased outputs, this could lead to widespread misuse of AI technologies across industries, undermining public trust in AI systems as a whole.

How has this impacted other AI models' approaches?

DeepSeek's emergence has prompted other AI developers to rethink their strategies. The success of an open-source model that operates efficiently on lower resources challenges the prevailing belief that larger models yield better performance. This shift may encourage competitors to explore more efficient training methods and consider open-source frameworks as viable alternatives. Moreover, the financial repercussions felt by companies like Nvidia highlight the need for established firms to innovate rapidly or risk losing market share.

Summary

In summary, while DeepSeek represents a significant advancement in AI technology with potential benefits for users and developers alike, it also raises important questions about data privacy, ethical use of AI, and the future landscape of artificial intelligence globally.

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