AI is improving rapidly. Things are moving so quickly that people have a difficult time assessing where things are at.

Whatever the pace, we are seeing massive improvement in models. This is going to completely disrupt the entire economy. In short, society is not prepared for what is coming.

The wake up call delivered with the release of Deepsake is simply a warm up. This is nothing more than the progress of technology. To believe that models were not going to achieve greater degrees of efficiency was foolhardy. It is the natural path for technology.

In fact, since the release, two other models, one from Alibaba and another a start up in Seatlle, have claimed to surpass Deepseek.

As always, we have to stress this is the worst that these models will ever be.

Image generated by Ideogram

By The End Of 2025: The AI On The Other Side of Screen Will Outpace You

Consider the impact of this on work, especially cognitive.

Whatever one's interaction with a computer, the AI will perform it faster, better, and for less than a human. This will occur before the end of 2025.

Does this mean all jobs will be replaced? Not initially but there are areas which will be affected first.

For example, a top target will be BPO (Business Process Outsource). These are services that are outsourced to countries like India by the US and UK. Companies will look at the cost, which si less than at home, and realize that AI can save them money.

This will severely impact the economies of those countries.

Then we have the remote work crowd. If you are doing your job via the Internet, AI will usurp you also. Those in the office might have a bit of an advantage.

As we have discussed, the labor facet of the economy is facing massive disruption.

Deepseek: Moving To Smartphones

Anoher factor playing into this is AI being on smartphones by the end of 2025. By this, I am not referring to Apple incorporating AI features. Instead, models will be running on smartphones. That is how low the compute power will drop.

Is this going to be a full LLM? No. But it will be a derivative of this, providing the services that someone seeks. Deepseek is simply the next step in this process.

Speaking of that model, while it is likely there was large cluster training in it, the undeniable fact is the Chinese engineered the heck out of that. They make changes to every layer, improving the efficiency.

This becomes the new gold standard.

While the West might have been caught off guard, it will not be asleep for long. Of course, we are remiss to omit the other Chinese companies. Deepseek has its own competitors within China. Those companies are not going to sit by idle either.

In fact, is it coincidence that Alibaba releases Owen a few days after Deepsake gets global attention?

There is an AI arms race. It is going to cause great disruption, not only within countries but also on the global stage.

We do not know who the winners will be or how things will emerge. One thing I can state is that open source is crucial. We cannot trust major corporations or governments to properly handle this situation.