Thread by @PeterDiamandis

Netflix ate Blockbuster.
Amazon crushed retail.
Uber reinvented transport.

And now... a tiny open-source AI team called DeepSeek is shaking OpenAI, NVIDIA, and the entire AI world to its core.

But this isn’t just about AI. This is the beginning of a revolution across industries.

Let’s talk about DeepSeek- a thread:

We know AI is moving faster than anyone predicted. While giants like OpenAI (4,500 employees & $6.6B raised in capital) have spent billions training their models, DeepSeek as a 200-person startup from China just built an AI system matching GPT-4 for 20x less money (roughly $5M).

Here are the 3 moonshot innovations that made them achieve the impossible:

#1: Precision Reimagined (Less is More)

Traditional AI: Uses 32 decimal places.

DeepSeek: Proved 8 is enough.

Result: 75% less memory needed

Sometimes, the biggest breakthroughs come from questioning basic assumptions.

#2 The Speed Revolution

Most AIs read text word-by-word. DeepSeek introduced a multi-token system that reads entire phrases at once, processing billions of words more efficiently.

Hence it's 2x faster while maintaining a 90% accuracy. That's a game changer.

#3 The Expert System

Rather than one AI trying to know everything (think of one person trying to be a doctor, lawyer, and engineer simultaneously), DeepSeek built a system of specialists.

Traditional Models: 1.8T parameters always active

DeepSeek: 37B active at once (from 671B total).

It's pure genius.

Why is this revolutionary, then?
The results are mind-blowing:

Training costs slashed from: $100M → $5M

GPUs needed slashed from: 100K → 2K

API costs reduced by 95%

Runs on gaming GPUs

All with a team of <200 people (not thousands)

Here’s the added kicker: It's all open source.

Anyone can verify, build upon, and implement these innovations.

This is AI democratized. The barriers to innovation just got obliterated.

What does this mean for Big Tech?

For NVIDIA? It’s terrifying. Their business model-selling overpriced GPUs with 90% margins... just became obsolete.

For other companies, their team's compensation alone exceeds DeepSeek's training budget (and their models aren't even that good).

This feels like the moment PCs disrupted mainframes or cloud computing changed everything. The efficiency genie is out of the bottle. There's no going back.

Innovation is no longer the privilege of Big Tech. It belongs to anyone bold enough to try.

DeepSeek proved that you don’t need billions, just creativity and focus.

So what’s your Moonshot?

Btw I wrote a blog in this. Catch it here: Diamandis.com/subscribe