The impending Age Of Abundance was prophecied in the scriptures thousands of years ago.
Monday, January 27, 2025
27: Marc Andreessen
For the past 5 years, the AI industry has been built on one core assumption:
— GC Cooke (@thegrahamcooke) January 27, 2025
Building powerful AI requires massive resources.
Huge data centers. Thousands of engineers. Billions in funding.
That assumption just got shattered: pic.twitter.com/39IHQyyO85
A new AI model has matched their performance at a fraction of the cost.
— GC Cooke (@thegrahamcooke) January 27, 2025
Not just marginally cheaper.
We're talking about an order of magnitude reduction in what it takes to build world-class AI.
This isn't just disruption - it's an extinction event.
China knows this, that's… pic.twitter.com/rNLWKtKl2n
To understand why, we need to look back at the dot-com crash of 2000.
— GC Cooke (@thegrahamcooke) January 27, 2025
History doesn't repeat itself...it rhymes.
Companies spent hundreds of billions laying fiber optic cables under oceans. This is remarkably similar to what happened with GPU's in the 2000's.
They built enough… pic.twitter.com/IOB1HdKuwl
But they made a crucial miscalculation:
— GC Cooke (@thegrahamcooke) January 27, 2025
The infrastructure far outpaced actual demand.
Companies like Webvan built billion-dollar warehouses, assuming everyone would instantly start buying groceries online.
They were right about the trend, but catastrophically wrong about… pic.twitter.com/aKDgUrLNGE
When reality hit, it was brutal:
— GC Cooke (@thegrahamcooke) January 27, 2025
• Stock prices collapsed
• Companies went bankrupt
• Trillions in value vanished
Today's AI boom is following the exact same pattern, but the numbers are even more shocking: pic.twitter.com/rM6MOmN1L8
Sequoia predicts the AI industry needs $600 billion in revenue to justify current investments.
— GC Cooke (@thegrahamcooke) January 27, 2025
We're at just 10% of that today.
This isn't just a gap - it's a chasm between expectation and reality.
And now comes the catalyst that brings it all down: pic.twitter.com/17vav6lKsu
This breakthrough in efficient AI development proves something stunning:
— GC Cooke (@thegrahamcooke) January 27, 2025
Most of the massive infrastructure being built right now is unnecessary.
Think about the implications:
• Billions in data centers? Overkill
• Massive hardware investments? Wasteful
• Current AI… pic.twitter.com/BzcK5iGlvt
The entire economic model of the AI industry is built on scarcity:
— GC Cooke (@thegrahamcooke) January 27, 2025
"Only a few companies can afford to build powerful AI."
That scarcity just vanished.
And when artificial scarcity disappears, bubbles pop:
After the dot-com crash, something fascinating happened:
— GC Cooke (@thegrahamcooke) January 27, 2025
While the media declared the internet "dead," the real revolution began quietly.
Amazon wasn't building unnecessary infrastructure.
They were solving real problems for customers: pic.twitter.com/Xg6DpUh71c
The same transformation is coming to AI.
— GC Cooke (@thegrahamcooke) January 27, 2025
Web4 will emerge from the ashes, built on fundamentally different principles:
• Efficient, affordable AI models
• Decentralized infrastructure
• Natural human interfaces
• Value from data quality, not brute force compute
This…
The winners won't be who you expect.
— GC Cooke (@thegrahamcooke) January 27, 2025
Just like Amazon understood retail better than https://t.co/gCiMu5OZfR understood pets...
The next AI giants will be built by people who understand real human needs.
Three massive shifts are already beginning:
1. Edge Computing Over Cloud:
— GC Cooke (@thegrahamcooke) January 27, 2025
AI moves from massive data centers to local devices, bringing privacy and speed
2. Data Quality Over Size:
Better data beats bigger models
3. Practical Uses Over Demos:
Solving real problems beats impressive parlor tricks
The smart money sees this… pic.twitter.com/JFyyo60pTG
We're witnessing a pivotal moment in tech history.
— GC Cooke (@thegrahamcooke) January 27, 2025
The AI bubble will burst.
But just like the internet after 2000, what comes next will be far more revolutionary than anyone expects.
The Japanese have one of the world's highest life expectancies.
— Kulbir Sohi (@LivingAlpha1) January 27, 2025
It's nothing to do with their genetics.
They've mastered ONE health secret that the West has never seen.
Here's the 2000-year-old tradition that's transforming thousands of lives: pic.twitter.com/i9vm56BGWZ
What Is Deepseek And How Is It Upending The AI World?
DeepSeek is a Chinese artificial intelligence (AI) company that has recently garnered significant attention for its rapid advancements in AI technology. Founded in 2023 and backed by the High-Flyer hedge fund, DeepSeek focuses on developing open-source large language models (LLMs) and has committed to open-sourcing all of its models. (Wikipedia)
In January 2025, DeepSeek released its flagship AI model, R1, which has been compared to OpenAI's latest model, o1. R1 was developed in just two months at a cost of under $6 million, significantly less than the investments made by its Western counterparts. The model has demonstrated advanced reasoning capabilities and has become the top-rated free application on Apple's App Store in several countries, including the US, the UK, and China. (Business Insider)
DeepSeek's approach to AI development emphasizes cost-efficiency and accessibility. By making its models open-source, the company allows the global developer community to inspect, improve, and build upon its technology. This strategy challenges the prevailing notion that developing advanced AI models requires substantial financial and computational resources. (Yahoo Finance)
The emergence of DeepSeek has had immediate effects on the global tech industry. Shares of major US AI-related companies, including Nvidia, Meta, and Microsoft, experienced significant declines in response to DeepSeek's success. Analysts have warned that the rise of low-cost Chinese alternatives to established US AI models could disrupt the investment landscape, forcing companies to reconsider their AI strategies. (The Economic Times)
However, DeepSeek's models have faced criticism for embedded censorship to comply with Chinese regulations, particularly concerning politically sensitive topics. This has raised concerns about data privacy and the potential for disinformation. (Wikipedia)
In summary, DeepSeek's rapid development and deployment of cost-effective, open-source AI models are challenging existing paradigms in the AI industry, prompting both excitement and concern within the global tech community.
Nightmare on Wall Street as tech stocks set to lose $1T over Chinese AI startup DeepSeek
Chinese AI chatbot DeepSeek sparks market turmoil
DeepSeek R1 just broke the Internet, and people are going crazy over it.
— Poonam Soni (@CodeByPoonam) January 27, 2025
SPOILER: ChatGPT is now falling behind.
13 WILD examples so far (Don't miss the 5th one): pic.twitter.com/449klVA32A
Your father named you after this character. That is how.
— Paramendra Kumar Bhagat (@paramendra) January 27, 2025
1. Creates bouncing yellow ball within a Rhombicosidodecahedronpic.twitter.com/K3zaj7yabZ
— Poonam Soni (@CodeByPoonam) January 27, 2025
2. Deepseek is #1 free app on the iOS app store. https://t.co/fk2zKkbOvs
— Poonam Soni (@CodeByPoonam) January 27, 2025
6. Effect of DeepSeek R1? @sama pic.twitter.com/tPMS4dhw6V
— Poonam Soni (@CodeByPoonam) January 27, 2025
7. Nailed the hard math questionpic.twitter.com/QZf7rYM2IT
— Poonam Soni (@CodeByPoonam) January 27, 2025
9. DeepSeek is a side project 🤯 pic.twitter.com/k2eVaUm9nK
— Poonam Soni (@CodeByPoonam) January 27, 2025
11. Nasdaq 100 futures are now down -330 POINTS since the market opened just hours ago as DeepSeek takes #1 on the App Store. https://t.co/1GVlRH3Wvr
— Poonam Soni (@CodeByPoonam) January 27, 2025
12. Deepseek R1 seamlessly work with code in Cursorpic.twitter.com/JWyClEs985
— Poonam Soni (@CodeByPoonam) January 27, 2025
13. Building Perplexity clone in an hour without writing single line of codepic.twitter.com/SuSouF8H3l
— Poonam Soni (@CodeByPoonam) January 27, 2025
Website & API are live now!
— Poonam Soni (@CodeByPoonam) January 27, 2025
Try DeepThink here: https://t.co/n4ATEXcYGC https://t.co/kkpEtg5kHl
Sadly, they seem to have responded in the only way they could have scuttled the competition --even if for a while:
— Kamran Rehmat (@kaamyabi) January 27, 2025
CHINESE AI DEEPSEEK HIT BY
LARGE-SCALE CYBERATTACK
Chinese AI sensation DeepSeek on Monday said it was limiting the registration of new users due to large-scale…
— Eddie (@IamwhoIam003) January 27, 2025
— Paramendra Kumar Bhagat (@paramendra) January 27, 2025
New name for the water that separates England and France pic.twitter.com/R6Lipj1Dra
— Elon Musk (@elonmusk) January 26, 2025
Seriously, a single Chinese company and AI model DeepSeek brings down the whole Wall Street and AI sector in US. The world is changing in such an unexpected way. https://t.co/3GPLDprEad
— Ambassador Chen Song (@PRCAmbNepal) January 27, 2025
Peter Thiel is a kingmaker in the shadows
— Jonathan Swanson (@swaaanson) January 27, 2025
He backed Trump in 2016 and now 7 of his ex-colleagues(JD Vance, David Sacks, Elon, Vivek) are running the US government
Once you understand how Thiel spots winners before anyone else, you'll build influential networks like no other🧵 pic.twitter.com/DUvF3k3I3h
Peter Thiel today is at the center of all talent in Trump's cabinet.
— Jonathan Swanson (@swaaanson) January 27, 2025
He has quietly built a Peter Thiel Cinematic Universe.
The kind of power that could transform the US government and Silicon Valley.
But how did Peter Thiel orchestrate this? pic.twitter.com/UVEbZN4UXG
Thiel values substance over status.
— Jonathan Swanson (@swaaanson) January 27, 2025
Status and prestige are zero-sum games.
In a world where real value can be created, substance and true knowers are the people to look for.
To assess winners before anyone else, he came up with 4 questions... pic.twitter.com/PBExFm2mSc
All of the greats have bet their company on a contrarian belief:
— Jonathan Swanson (@swaaanson) January 27, 2025
Jobs and Gates: Computers will sit on desks, not warehouses.
Elon: Self-driving and Electric is the future.
Jensen: GPUs are the future, not CPUs. pic.twitter.com/rV7syrO4Wn
Peter's decision to hire David Sacks at PayPal is the perfect example of this.
— Jonathan Swanson (@swaaanson) January 27, 2025
Sacks walked into his interview, called their core product dumb, and walked out with a job. pic.twitter.com/MAC4XDsB6s
4. Do they have Zen-like opposites?
— Jonathan Swanson (@swaaanson) January 27, 2025
Exceptional people are living contradictions with a combination of unusual traits.
- Stubborn and open-minded
- Idiosyncratic yet work well in teams
Thiel calls this "The Founders Paradox" and I think it's his best idea. pic.twitter.com/3OS9c3275M
Thiel's ability to identify exceptional people by focusing on the right things helps him build extraordinary teams.
— Jonathan Swanson (@swaaanson) January 27, 2025
He creates the conditions that enable them to do their life's work.
And Peter does so by using a very peculiar system: pic.twitter.com/uP061BjITz
Most entrepreneurs can only aspire to be as good as Peter at recruiting and enforcing focus.
— Jonathan Swanson (@swaaanson) January 27, 2025
This stops them from operating at a high level of leverage.
While most founders operate at Level 2 or 3, Peter comfortably rests at 5. (maybe higher) pic.twitter.com/nmSs8Po0PA