The open-source reasoning model R1 Deepseek developed by the Chinese startup Deepseek has sparked a lively discussion, challenging the industry landscape.

"R1 Deepseek is the Sputnik moment of the AI field." —— @pmarca, founder of a16z

Note: The "Sputnik moment" refers to the event on October 4, 1957, when the Soviet Union successfully launched the world's first artificial satellite, Sputnik 1. This term describes the turning point when a country or organization realizes it is lagging behind its competitors, thus driving innovation and enhancing its own capabilities.

The following is a summary of the latest developments in the AI and cryptocurrency fields over the past 48 hours to help you quickly grasp the key changes.

R1 Deepseek and its impact on the AI market

With the launch of R1 Deepseek, the AI token market continues to face pressure, raising concerns ahead of the US stock market opening.

"As long as the output is good enough, I don't care if China takes all my data and personal information." —— @notthreadguy

What is R1 Deepseek? How does it affect AI?

R1 Deepseek is considered a strong competitor to OpenAI but with much lower costs.

Deepseek seems to have developed a breakthrough AI model with extremely low costs, not relying on top-of-the-line computing chips.

The market is expected to experience significant volatility after the US stock market opens.

According to reports, the "quality index" of Deepseek can be compared to OpenAI, but the development cost is only around $5 million.

In contrast, OpenAI has spent more than $5 billion, meaning that if the above data is accurate, Deepseek has achieved over 1,000 times the efficiency.

Doubts about the actual cost and market impact

Deepseek claims to have used around 2,000 NVIDIA H800 units, worth about $50 million.

However, the market speculates that the actual number could be up to 100,000 GPUs, bringing the total cost close to $2.5 billion, a more reasonable figure.

Price volatility will increase as the market reassesses Deepseek's valuation.

Deepseek and the AI ecosystem

Deepseek not only shakes up the AI model field but also has a close connection with the AI intelligences ecosystem. In fact, the AI Eliza has been supporting Deepseek for the past two weeks.

"Everyone understands that DeepSeek is a big win for cryptocurrency and the open-source space, right?" —— @shawmakesmagic

Industry updates:

• Bittensor: Upgrading the subnet in the next 2 weeks, all transactions will be executed through TAO.
• DeFAI: @HeyAnonai deploys Red Teams to test security and increase user confidence.
• Mode: Launched the Co-Pilot feature, supporting the terminal interface, attracting significant attention.
• FomoRadioAi: Using AI to create videos from daily news, expected to become increasingly popular.
• AI Hackathon: Organized by cookie, with many participants and highly appreciated.
• Solana Project: Successfully raised $31 million, with the important participation of @ondaxbt.
• $VAULT: A project developed by former Meta employees, attracting attention.
• DAO for Intelligent Asset Investment: Integrated into the @tribedotrun platform and has started distributing airdrops. @wai_combinator and @daosdotfun are leading in this field. Will there be a forked version of this Intelligent Asset platform in the future?

Trend of AI Altcoin

Summary

The pace of innovation is accelerating, and concerns about R1 Deepseek have led to significant price volatility.

This may be a good time to focus on promising projects that are currently undervalued, and seize the early opportunities!