DeepSeek's $6M Training Headline Was Fake Marketing

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.6 • 1.3K Ratings

🗓️ 4 February 2025

⏱️ 22 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode #2910, Eric Siu and Neil Patel discuss the launch of DeepSeek, a Chinese AI model, and the misleading headlines surrounding its training costs. They explore the competitive landscape of AI, particularly in relation to China's advancements, and discuss the implications for job markets and business efficiency. Don’t forget to help us grow by subscribing and liking on YouTube! Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT) TIME-STAMPED SHOW NOTES: (00:00) DeepSeek's Controversial Launch and Misleading Headlines (02:58) The Reality of AI Training Costs and Competition (05:48) China's AI Advancements and Global Competition (08:49) The Impact of AI on Job Markets and Business Efficiency (11:57) Consumer Behavior Shifts in the Age of AI (15:02) Navigating AI Tools and Data Privacy Concerns (17:51) Founders' Perspectives on AI and Business Strategy (21:56) That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Leave Some Feedback: What should we talk about next? Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency X @neilpatel X @ericosiu

Transcript

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0:00.0	So deep seek $6 million training headline was fake marketing.
0:03.6	Did you know that?
0:05.8	I saw rumors and on X, there was people breaking down charts of where of
0:12.7	NVIDIA's revenues coming from.
0:15.1	And they're showing one of the largest buckets being Singapore.
0:18.4	And they're like, why would Singapore need all of these chips? And I don't
0:22.4	know if this is true or not, but on X, people are claiming the Singapore revenue was, in theory,
0:27.0	people from China buying the chips, but they're skirting around regulations. Yeah. Oh, wow. Neil didn't
0:32.0	bring his iPad today. So the thing with Deepseek is just so everyone that doesn't know yet.
0:36.6	Deepseek is this model that came out actually Q4, 2024.
0:41.3	So it's this hedge fund that launched this in competition with like OpenAI, for example, or Gemini.
0:48.1	It's an LLM.
0:48.9	Chinese hedge fund.
0:49.9	Chinese hedge fund.
0:50.5	So it's a Chinese, it's a China-based company.
0:52.6	And the headline was, oh, wow,
0:54.6	this company spent $6 million and it's basically at par with OpenAI's 01 model, which is their
0:59.8	best one right now. Actually, O3 just came out today, the mini launch just came out today. But
1:03.4	01 is their top tier one. You're paying $200 a month for it. It's expensive, right? The cool thing is this one's way cheaper. It's either it's free for people to use. It's open source, which is very big. And you're getting like a 93% discount when you're using it. It's roughly 1.45th the cost. Yes. And the beauty of this, so even this week, I was talking to my CT, I was like, oh, I think what we're going to do is we're just going to buy a lot of these NVIDIA computers that are coming out, and we're just going to stack them up and run deep seek locally. It's going to be way cheaper,
1:29.7	which we're still going to do, by the way. But the thing is, the $6 million headline,
1:33.9	you remember Jin Yang from Silicon Valley? No. Oh like, the show is Silicon Valley, you know that, right? Yeah, but when you first asked, I thought you meant, do I know this person from actually the
1:47.0	valley? Oh, no, no. But I didn't watch the show here. So Silicon Valley, it's like a funny show
	...

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