52 Weeks of Cloud

Why DeepSeek Culture Beats American Tech Culture


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Core Strengths of DeepSeek's Approach
  1. Open Source Innovation
  • Slashed API costs to 1/30th of OpenAI's
  • Focuses on affordability and accessibility
  • Triggered price competition with ByteDance and Ali Cloud
  1. Original Research Philosophy
  • Prioritizes foundational research over quick commercialization
  • Developed MLA architecture as transformer alternative
  • Aims to lead through new designs rather than imitation
  1. Long-term Research Focus
  • Commits to fundamental breakthroughs over quick profits
  • Not constrained by existing revenue streams
  • Emphasizes patient capital for major innovations
  1. Strategic Specialization
  • Focuses solely on core model research
  • Avoids diversification into apps/products
  • Enables deeper expertise in foundational AI
US Tech Industry Challenges
  1. Regulatory and Market Issues
  • Big Tech focuses on regulatory capture
  • Lobbying for AI safety rules favoring incumbents
  • Emphasis on closed ecosystems over innovation
  1. Innovation Barriers
  • Large companies prioritize incremental updates
  • Focus on vertical integration through acquisitions
  • Risk-averse R&D approach
  1. Structural Problems
  • Short-term profit focus
  • Talent concentration in big tech
  • Healthcare/education costs limiting entrepreneurship
  • Income inequality affecting innovation pipeline
  1. Cultural Factors
  • Elite clustering in top tech roles
  • Resource barriers to STEM education
  • Focus on pedigree over merit
  • Transactional versus collaborative culture

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52 Weeks of CloudBy Noah Gift

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