Sure, but those are relatively small potatoes.

And if a single person does it a lot, then the tax authorities can easily examine their spending and prove that they are spending more than they are officially earning. And then they can apply punitive measures.

Extra funds are only useful if they can provide a competitive advantage.

Otherwise those investments will not have a positive ROI.

The case until now was built on the premise that US tech was years ahead and that AI had a strong moat due to high computer requirements for AI.

We now know that that isn’t true.

If high compute enables a significant improvement in AI, then that old case could become true again. But the prospects of such a reality happening and staying just got a big hit.

I think we are in for a dot-com type bubble burst, but it will take a few weeks to see if that’s gonna happen or not.

There could be some trickery on the training side, i.e. maybe they spent way more than $6M to train it.

But it is clear that they did it without access to the infra that big tech has.

And on the run side, we can all verify how well it runs and people are also running it locally without internet access. There is no trickery there.

They are 20x cheaper than OpenAI if you run it on their servers and if you run it yourself, you only need a small investment in relatively affordable servers.

True, but training is one-off. And as you say, a factor 100x less costs with this new model. Therefore NVidia just saw 99% of their expected future demand for AI chips evaporate

Even if they are lying and used more compute, it’s obvious they managed to train it without access to the large amounts of the highest end chips due to export controls.

Conservatively, I think NVidia is definitely going to have to scale down by 50% and they will have to reduce prices by a lot, too, since VC and government billions will no longer be available to their customers.

Wth?! Like seriously.

I assume they are running the smallest version of the model?

Still, very impressive.

Because the silicon valley bros had convinced the national security wonks in the Beltway that it was paramount for national security, technological leadership and economic prosperity.

I think this will go down as the biggest grift in history.

Kevin Walmsley reported on Deepseek 10 days ago. Last week, the smart money exited big tech. This week the panic starts.

I’m getting big dot-com 2.0 vibes from all of this.

https://youtube.com/@inside_china_business

Fair enough. I have an 8 year old Mercedes.

Perhaps I should get a newer car.

It is, but it’s also a very efficient and difficult to evade tax. For many EU countries the VAT revenue is equal or larger than the income tax revenue.

Most Europeans don’t mind it. You can control your spending, so VAT doesn’t hit us in inconvenient ways, like for example, taxes on cars and property.

European countries compensate poor people with good social programs. So in the end, poor people are getting more benefits than the VAT they pay.

My car gives a warning when it detects a potential collision.

Usually, it’s right before I start turning into a turn.

I get it, it’s 2-bit brain doesn’t realize that the car will not, in fact, drive straight into the wall.

It doesn’t realize that I have had my foot off the gas in anticipation.

I would really hate if the car would brake under those circumstances.