the competition war between China and the United States just got even crazier because this one Chinese app single-handedly wiped out $1 trillion from the US Stock Market yesterday and sent shock waves around the world but just a couple of days ago hardly anyone even knew its name today however they're calling it a Sputnik moment referring to the day that Russia became the first country in the world to launch a satellite into space marking the beginning of the now Infamous Space Race and just like then this moment marks the beginning of a new kind of race an AI race and it's already shaking the foundation of Global Tech dominance so here's why even Donald Trump is calling it a wakeup call it see 8 years ago Vladimir Putin said something that has become a commonly used phrase whoever controls the future of AI controls the world and for years experts have been saying that China is years behind America when it comes to artificial intelligence and lowkey um the US government can kind of take a little credit for that because three years ago they ban Nvidia which is the world's leader in AI Tech chips from selling to China and that was supposed to Ure America's dominance Global dominance when it comes to AI but uh kind of like the Tik Tok ban it kind of looks like that might have massively backfired you see because one thing is for sure necessity breeds Innovation so this one small relatively unknown research lab in China known as deep seek well they were forced to rethink everything when it comes to creating AI models from the ground up they didn't have access to the world's most advanced chips like the a100 or the h100 from Nvidia which honestly were thought to be essential for training the world's most powerful AI models and instead they claimed to use Chinese made chips which many thought were too slow or too inefficient for this kind of project but boy thought is the key word there because the result they managed to create an AI model that is just as good if not even better than open ai's most advanced model and here's the kicker for 90% less of the cost man for perspective open AI spends 5 billion with a billion dollar oh God this is like the LA fires thing all over again $5 billion a year right and then they also spent 100 million just to train GPT 4 while deep seek to create this entire project 5.5 million with an M that is so staggeringly low that when people saw this in their paper how much they say that it cost a lot of people refuse to believe it they're saying there ain't no way that's like the equivalent of running a for Ferrari on the budget of a a used bicycle the numbers just don't seem real I mean just a few days ago this is crazy they some of the biggest US tech companies right they invested $500 billion with a B let's let's do that again just on AI data centers right and then just a couple of days later they see China no less create this for under six million hell of course the US Stock markets are going to crash cuz they're thinking like godamn if this could be achieved for like 95% of the price what am I investing my billions for in fact Nvidia you know the chip maker that was thought to be the most essential for creating any powerful AI well their market cap lost nearly 600 billion in a single day that is the biggest drop for any company in US history in a 24-hour period oh but it gets crazier Because deep seek did one more thing not only did they drop this AI model for free I I mean the audacity while open AI is charging $200 a month but they also dropped it open source meaning anyone anywhere can access the code improve it adapt it and even use it to build their own AI models for free this is insanity and here's the wildest part by dropping it open source they've now created a global ecosystem of innovation with AI because thousands of developers are already building on top of their work it's like throwing gasoline onto an AI fire this is oh and it's also incredibly ironic because open AI is closed right well deep seek is now literally open AI the wrong name in fact they have caused so much disruption by doing this that after they shot to number one in the app store they were forced to temporarily limit user registrations due to large-scale malicious attacks on its services I mean you only Wonder because you just think about the amount of money that is being lost and is now being put into Jeopardy from do from doing this where someone pissed and just trying to shut them down now let me kind of like bring down the hype as well because it's not all perfect unlike open AI deep seek has you know that Chinese censorship built into it people already been showing that you can't ask it about any sensitive questions that well China May deem sensitive you can't get it to talk about tienan Square you can't ask it for criticisms of you know the Chinese Communist party you can't ask it to criticize you know Xi Jinping and honestly you probably can't ask it a lot more things that we don't even know yet this is just what people are putting online and hypothetically let's say you know Chinese AI becomes the most advanced in the world and like everyone starts using it the equivalent to like open AI that's kind of worrying because a lot of people use chatbots now as like an alter alternative to Google and they use it for information gathering and learning and so if you can't rely on that thing that's giving you information to be giving you the full truth then that's a pretty dark future that we would be going into for Freedom of Information and there's also another issue you know by dropping it for free and also open source they've made it accessible not just to researchers but also Bad actors this could honestly supercharge disinformation campaigns hacking or even AI powerered scams on a global scale honestly this is powerful stuff and then there's also the conversation of what this move has done for the AI race and then what that might do to the safety of AI advancement because you think that open Ai and all the other US tech companies are just going to sit back though they're billions and billions of dollars and just say let's let let's let China win hell no that ain't going to happen what we are all witnessing right now is a serious inflection point in this race to create the most advanced AI humanly possible and it just got freaking serious and that is also scary because this AI race was what so many experts feared would happen because you know in the rush to outpace competitors because companies are increasingly likely to cut safety corners and ethical concerns governments will be more hesitant to impose AI safety regulations in fear that it would slow down the progression and this honestly could lead to AI systems being created or put on the market without a full understanding of the consequences I mean there's a reason that Vladimir Putin of all people why his quote became so popular you know artificial intelligence literally has the power and the potential to reshape the world and while most of us hope it's for the better it could also be pretty bad you know because of how fast it can learn from itself and Advance it could easily outpace what are everyday systems are prepared for and cause catastrophic disruption and honestly whatever China is doing right now has got the US Shook and then Banning AI ships to be sold to China was just one thing in a wider pattern of what they're doing you know they've placed 100% tariffs on Chinese EV cars because if you ask any car expert any YouTuber car person they will admit that if Chinese EVS were allowed just you open open the floodgates let them into the United States they would destroy I mean me and my brother just went to China over New Years and Elliot he freaking owns a Tesla he loves that car yet we saw some of these Chinese EVS that were more advanced from brands that you've never even heard of more advanced than anything that we've seen before also at half the freaking price I mean he admitted himself that their self-driving was more advanced than anything he's experienced with Tesla and Tesla is like years ahead of all of the competition in the west and it's not just cars and AI roughly a month ago they shocked the world yet again when they revealed their sixth generation stealth fighter called the white Emperor and that was so disturbing because like for years the US has by far been the leader in creating the world's most advanced fighter jets yet their sixth generation fighter jet program still in development oh and let's not forget Chinese freaking social media you know they came along with Tik Tok and its insane algorithm and Chang social media like like we've never seen before all the US tech companies started copying it and now they're freaking Banning it or I guess at least own half and I know this sounds like some freaking Chinese propaganda it's not right it's simply a fact that the competition coming out of China right now almost on every level is terrifying for America I mean not only because they don't want to lose their Global superpower status but also because China has a political system that is completely different I mean you know how many wars the United States has fought to defend democracy against communism and now you've got a freaking communist country competing with America on so many different levels that competition it's not just competition this is like a war for them and then with all of that going on you got us here in the middle hi we're just trying to make it to see GTA 6 release a that so intense I think that's uh that's enough Yap for the day huh full news Roundup for the week coming on Thursday now I promise with many any whippings to remind everyone subscribe we're going to hit that million real soon my plan my goal is June but let's hope so I'll see you there love you bye [Music]