DeepSeek
A Chinese AI lab that developed highly efficient open-source large language models, demonstrating that competitive performance is achievable at a fraction of the training cost of Western frontier models.
DeepSeek's V3 model, released in late 2024, reportedly cost only $5.6 million to train — a fraction of the hundreds of millions spent on comparable Western models. DeepSeek-R1, their reasoning model, matched or exceeded OpenAI's o1 on several benchmarks. The release triggered a $1 trillion stock market sell-off in AI-related stocks in January 2025, raising questions about the necessity of massive compute investments. DeepSeek demonstrated that algorithmic innovation and efficient training could partially substitute for raw compute spending.
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Artificial General Intelligence (AGI)
A hypothetical form of AI that can understand, learn, and apply knowledge across any intellectual task at or above human level, rather than being specialized for specific tasks.
Capex (Capital Expenditure)
Long-term investment spending by companies on physical assets like data centers, GPU clusters, and networking infrastructure — the backbone of AI deployment at scale.
ChatGPT
OpenAI's conversational AI assistant, launched in November 2022, which catalyzed the current generative AI boom by demonstrating the capabilities of large language models to a mainstream audience.
EU AI Act
The European Union's comprehensive AI regulation, which entered into force on August 1, 2024, classifying AI systems by risk level and imposing requirements from transparency disclosures to outright bans.
Fine-Tuning
The process of further training a pre-trained AI model on a specific, smaller dataset to specialize it for a particular task or domain, requiring far less compute than training from scratch.
Foundation Model
A large AI model trained on broad data that can be adapted to a wide range of downstream tasks — examples include GPT-4, Claude, Gemini, and Llama.
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