NOTES ON DEEPSEEK: GENERATIVE AI IS ALL ABOUT THE APPLICATIONS NOW

Summary from the TLDR AI newsletter

DeepSeek R1, a new open-source AI model from China, significantly reduces the cost of running AI models to just 3-5% of OpenAI's comparable models. This cost reduction shifts focus from infrastructure investment to actual AI application development, challenging existing economic models in the AI industry. The development has the potential to spur new AI products but also raises concerns about adequate generative AI applications.