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GC Cooke Profile picture
@GCcookeHQ
Jan 27 • 19 tweets • 7 min read • Read on X
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A Chinese company just shattered OpenAI's $18 billion advantage:

They proved you can build ChatGPT-level AI for 100x cheaper.

And it's about to trigger the biggest market crash since the dot-com bubble.

Here's why the Chinese are keeping this a secret: Image
For the past 5 years, the AI industry has been built on one core assumption:

Building powerful AI requires massive resources.

Huge data centers. Thousands of engineers. Billions in funding.

That assumption just got shattered:
OpenAI has raised $18 billion.

They've built some of the world's most advanced data centers, hired the brightest minds, and spent years perfecting their models.

All based on the belief that this was the only way forward.

But something just changed everything:
A new AI model has matched their performance at a fraction of the cost.

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 why DeepSeek just restricted registration to mainland China mobile numbers only.
To understand why, we need to look back at the dot-com crash of 2000.

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 infrastructure to handle 50 years of internet traffic growth.

Everyone was convinced this was the future:Image
But they made a crucial miscalculation:

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 timing.

That is a universal law of disruptive technology - eventually, supply exceeds demand and the cycle resets:
When reality hit, it was brutal:

• 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:
Sequoia predicts the AI industry needs $600 billion in revenue to justify current investments.

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: Image
This breakthrough in efficient AI development proves something stunning:

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 valuations? Pure fantasy

Here's why this changes everything:
The entire economic model of the AI industry is built on scarcity:

"Only a few companies can afford to build powerful AI."

That scarcity just vanished.

And when artificial scarcity disappears, bubbles pop:
Just like the internet in 2000, AI is about to enter its "trough of disillusionment."

Not because the technology doesn't work.

But because we've built an entire industry on assumptions that are no longer true.

History tells us what happens next:
After the dot-com crash, something fascinating happened:

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:
The same transformation is coming to AI.

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 reshapes the entire landscape:
The winners won't be who you expect.

Just like Amazon understood retail better than understood pets...

The next AI giants will be built by people who understand real human needs.

Three massive shifts are already beginning:Pets.com
1. Edge Computing Over Cloud:
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 coming:Image
We're witnessing a pivotal moment in tech history.

The AI bubble will burst.

But just like the internet after 2000, what comes next will be far more revolutionary than anyone expects.
Thanks for reading! - you're awesome!

Follow me @thegrahamcooke for more.

Like/Repost the quote below if you benefited:
A bit more about me!

I'm Graham.

Author, innovator, entrepreneur, and one of the first European employees at Google. I built products with them that generated over $2B+ in revenue.

Currently working on @bravaxyz for effortless, secure, stablecoin yields, on autopilot.
Video credits:
• YT link youtube.com/watch?v=rcIqrT…
• YT link youtube.com/watch?v=VdACzw…
• YT link youtube.com/watch?v=-2k1rc…
• YT link youtu.be/iUHMnVIvGI8?si…
• YT link youtu.be/WEBiebbeNCA?si…
• YT link youtube.com/watch?v=Nib5ye…

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More from @GCcookeHQ

GC Cooke Profile picture
Apr 2
Every financial advisor's worst fear came true:

Scott Galloway tells millions: "Just buy ETFs and forget about it."

But traditional ETFs are built on a system that's about to collapse.

The next wave of tech will obliterate traditional investing: Image
Traditional ETFs are built on outdated assumptions.

They track companies from an era where market dominance meant controlling physical assets and distribution networks.

That world is dying.

Let me explain:
The next wave of value creation won't come from centralized corporations.

Today's ETF giants maintain power through:
• Owning user data
• Controlling infrastructure
• Dominating distribution

Blockchain and AI are shattering these barriers.
Read 14 tweets
GC Cooke Profile picture
Mar 26
The music industry's fatal mistake.

They tried controlling how we listen to music.

Remember CD players, Walkmans & those clunky portable devices?

What happened next is about to repeat with banks: Image
Image
In the 1980s, music was a billion-dollar empire.

The industry had total control:
• What format you could listen to
• How you could play it
• Where you could buy it

They made you buy entire albums just to hear one song.
MP3s arrived and changed everything:

You could download any song, instantly share with friends & store thousands of tracks on a tiny device.

The industry panicked.

Their response? Sue everyone who used the technology.

Here's where it gets interesting: Image
Read 14 tweets
GC Cooke Profile picture
Mar 24
The IPO is dead.

Goldman Sachs invented it in 1906 for United Cigar Manufacturers.

But from 2025, the next 100 most valuable companies won't IPO on public markets.

Here's why this disruption changes everything: Image
IPOs revolutionized company funding:

Investment banks needed a way to get European money into America.

They created a system letting the public buy shares in companies.

For 100+ years, this was how companies raised money to grow.

But something's fundamentally changed:
The AI wrecking ball has arrived.

It's transforming business faster than anyone expected.

Every week, new AI breakthroughs completely disrupt company valuations.

Google disrupted media 20 years ago, AI is disrupting ALL business today.

Here's where it gets interesting:
Read 14 tweets
GC Cooke Profile picture
Mar 20
The investment advice your parents relied on has become dangerously outdated.

They say "just invest in index funds for 30 years."

AI and blockchain will make this strategy EXTINCT.

Here's what you need to understand to protect your wealth: Image
The standard financial playbook worked flawlessly for 40 years:

Simply invest in the S&P 500 and let compound interest build your wealth.

People like Scott Galloway and Morgan Housel built careers promoting this single approach.

Yet they've completely missed the transformation happening right now...
A fundamental structural shift has taken over the stock market.

Market cycles have evolved beyond their normal patterns.

The current decline signals deeper issues.

The S&P 500 and NASDAQ show clear warning signs: Image
Read 16 tweets
GC Cooke Profile picture
Mar 17
What Google did to media 20 years ago, AI is about to do to every business on Earth.

A single tech giant transformed a $1T media industry forever.

Now, AI is transforming ALL industries at 100x the speed.

Here's why the smart money is moving away from traditional finance: Image
Image
In 2004, Google launched AdSense.

The platform completely rewrote the rules of advertising.

Companies once paid newspapers and TV networks millions for ads.
Then Google enabled them to reach customers directly for pennies.

And what happened next would reshape the entire economy:Image
Today, AI has begun disrupting every sector simultaneously:

• Healthcare (diagnostics in seconds)
• Legal (contracts reviewed instantly)
• Finance (trading automated)
• Education (personalized learning)

But the market hasn't realized the full implications yet:
Read 14 tweets
GC Cooke Profile picture
Mar 14
The internet you know will die by 2026.

75% of what you do online will be handled by AI agents instead.

Your "digital twin" will replace websites and apps completely.

Here's how you can prepare for the extinction of websites and apps: Image
Image
The internet as we know it is dying.

Every website, app, and digital interface will become obsolete.

We're witnessing the end of the human-centric web.

The next era belongs to AI agents:
Our current web architecture has fundamental flaws.

Every request travels to servers, gets processed, and returns data.

This creates latency, security risks, and inefficient processing.

We're stuck in outdated paradigms, like cars designed as carriages: Image
Read 15 tweets

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