• VENTUREBEAT.COM
    Phoenix Labs is laying off majority employees, 2 years after Forte deal
    Phoenix Labs, the maker of Dauntless and Fae Farm, has laid off a majority of its staff two years after it was quietly acquired by blockchain gaming firm Forte.Read More
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  • VENTUREBEAT.COM
    DeepSeek-R1 is a boon for enterprises making AI apps cheaper, easier to build, and more innovative
    Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn MoreThe release of the DeepSeek R1 reasoning model has caused shockwaves across the tech industry, with the most obvious sign being the sudden sell-off of major AI stocks. The advantage of well-funded AI labs such as OpenAI and Anthropic no longer seems very solid, as DeepSeek has reportedly been able to develop their o1 competitor at a fraction of the cost.While some AI labs are currently in crisis mode, as far as the enterprise sector is concerned, its mostly good news.Cheaper applications, more applicationsAs we had said here before, one of the trends worth watching in 2025 is the continued drop in the cost of using AI models. Enterprises should experiment and build prototypes with the latest AI models regardless of the price, knowing that the continued price reduction will enable them to eventually deploy their applications at scale.That trendline just saw a huge step change. OpenAI o1 costs $60 per million output tokens versus $2.19 per million for DeepSeek R1. And, if youre concerned about sending your data to Chinese servers, you can access R1 on U.S.-based providers such as Together.ai and Fireworks AI, where it is priced at $8 and $9 per million tokens, respectively still a huge bargain in comparison to o1.To be fair, o1 still has the edge over R1, but not so much as to justify such a huge price difference. Moreover, the capabilities of R1 will be sufficient for most enterprise applications. And, we can expect more advanced and capable models to be released in the coming months.We can also expect second-order effects on the overall AI market. For instance, OpenAI CEO Sam Altman announced that free ChatGPT users will soon have access to o3-mini. Although he did not explicitly mention R1 as the reason, the fact that the announcement was made shortly after R1 was released is telling.More innovationR1 still leaves a lot of questions unanswered for example, there are multiple reports that DeepSeek trained the model on outputs from OpenAI large language models (LLMs). But if its paper and technical report are correct, DeepSeek was able to create a model that nearly matches the state-of-the-art while slashing costs and removing some of the technical steps that require a lot of manual labor.If others can reproduce DeepSeeks results, it can be good news for AI labs and companies that were sidelined by the financial barriers to innovation in the field. Enterprises can expect faster innovation and more AI products to power their applications.What will happen to the billions of dollars that big tech companies have spent on acquiring hardware accelerators? We still havent reached the ceiling of what is possible with AI, so leading tech companies will be able to do more with their resources. More affordable AI will, in fact, increase demand in the medium to long term.But more importantly, R1 is proof that not everything is tied to bigger compute clusters and datasets. With the right engineering chops and good talent, you will be able to push the limits of what is possible.Open source for the winTo be clear, R1 is not fully open source, as DeepSeek has only released the weights, but not the code or full details of the training data. Nonetheless, it is a big win for the open source community. Since the release of DeepSeek R1, more than 500 derivatives have been published on Hugging Face, and the model has been downloaded millions of times.It will also give enterprises more flexibility over where to run their models. Aside from the full 671-billion-parameter model, there are distilled versions of R1, ranging from 1.5 billion to 70 billion parameters, enabling companies to run the model on a variety of hardware. Moreover, unlike o1, R1 reveals its full thought chain, giving developers a better understanding of the models behavior and the ability to steer it in the desired direction.With open source catching up to closed models, we can hope for a renewal of the commitment to share knowledge and research so that everyone can benefit from advances in AI.Daily insights on business use cases with VB DailyIf you want to impress your boss, VB Daily has you covered. We give you the inside scoop on what companies are doing with generative AI, from regulatory shifts to practical deployments, so you can share insights for maximum ROI.Read our Privacy PolicyThanks for subscribing. Check out more VB newsletters here.An error occured.
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  • WWW.GAMEDEVELOPER.COM
    People Can Fly teams with The Coalition on Gears of War: E-Day development
    Polish developer People Can Fly has been enlisted to help The Coalition on Gears of War: E-Day.The studio previously developed Gears of War: Judgement and assisted with the first three Gears games. In the announcement, CEO Sebastian Wojciechowski called it "a privilege and an exciting opportunity" to return to the franchise. "We are deeply grateful for our partners trust and support on this journey."Mike Crump, studio head for The Coalition, similarly called it a pleasure to "partner with the talented folks at People Can Fly who have been a part of our franchises legacy for so long."This provides some stability to People Can Fly, which had a tumultuous 2024. After laying off 30 employees in January and scrapping one of its unannounced projects in April, it ended the year pausing development on a separate project and cutting another 120 workers.In June 2023, People Can Fly announced it'd entered a work-for-hire deal with Microsoft based on one of its properties. At the time, it said Microsoft would be funding the then-unknown project, which was said to be budgeted between $30 million and $50 million.It takes two (or more) to develop a gameThe Coalition has previously juggled co-developer duties with its own projects. Many of these collaborations have been Gears-related: it helped Splash Damage on 2020's strategy spinoff Gears Tactics and Mediatonic on Gears Pop! for mobile platforms.Outside of the Gears series, it previously teamed up with 343 Industries (now Halo Studios) on Halo Infinite, and with Epic Games on The Matrix Awakens. Gears of War: E-Day is the first game Coalition has led development on since Gears 5 back in 2019.The upcoming Gears prequel isn't the only major Xbox game with a high-profile co-development partnership: Crystal Dynamics has been helping The Initiative on the upcoming Perfect Dark reboot, and Eidos Montreal is supporting the development of Playground Games' Fable. Certain Affinity, while not a first-party Microsoft studio, also has a long history of helping on the Halo games.For People Can Fly, co-developing E-Day gives it another reprieve. In 2014, co-founder Adrian Chmielarz revealed the team helping with the PC port for the first Gears "saved the studio," and led to it taking the reigns on Judgement.
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  • WWW.THEVERGE.COM
    FBIs warrantless backdoor searches ruled unconstitutional
    Following years of litigation, a federal court has finally ruled it unconstitutional for the FBI to search communications of US citizens collected under Section 702 of the Foreign Intelligence Surveillance Act (FISA). In a ruling unsealed last week, US District Court Judge LaShann DeArcy Hall decided that these backdoor searches violate the Fourth Amendment.As noted by the Electronic Frontier Foundation, FISA allows federal intelligence agencies to collect swaths of foreign communications in the name of national security. Even though some of those communications might involve US residents, the government has argued that requiring warrants would hinder the FBIs ability to obtain and act upon threat intelligence. In 2023, the FBI conducted more than 57,000 US person data searches, marking a 52 percent decrease from 2022.This particular decision stems from a case involving Agron Hasbajrami, a permanent US resident who was arrested in 2011 over accusations that he planned to join a terrorist organization in Pakistan. However, the government failed to disclose that part of its case rested on emails it obtained without a warrant through Section 702 of FISA.An appeals court in 2020 ruled that these types of searches might be unconstitutional, but now its official. Judge DeArcy Hall found the FBIs warrantless search of US data unreasonable under the Fourth Amendment:While communications of U.S. persons may nonetheless be intercepted, incidentally or inadvertently, it would be paradoxical to permit warrantless searches of the same information that Section 702 is specifically designed to avoid collecting. To countenance this practice would convert Section 702 into precisely what Defendant has labeled it a tool for law enforcement to run backdoor searches that circumvent the Fourth Amendment.Congress reauthorized Section 702 of FISA last year, and its set to expire again in 2026. The EFF is asking lawmakers to create a legislative warrant requirement so that the intelligence community does not continue to trample on the constitutionally protected rights to private communications.
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  • WWW.THEVERGE.COM
    Sony reduces OLED burn-in fears with a three-year warranty on InZone monitors
    Sony is upping the limited warranty on some InZone gaming monitors to three years and is tossing in OLED burn-in coverage for the 27-inch M10S. The company announced the additional coverage today after launching both the InZone M10S OLED and M9 II LED in September with only one-year limited warranties out of the box. Sony says other than that, the limited warranties remain as they were.Manufacturers have long been averse to talking about burn-in or have outright categorized the phenomenon as normal use, denying warranty claims to fix it on various panel types. However, OLEDs have historically been more susceptible to burn-in, especially when used with many static images like those from a PC. In recent years, OLED has improved to be less sensitive to burn-ins.Sony is the latest in a trend of manufacturers adding burn-in coverage. Alienware was one of the first to specifically include OLED burn-in within its three-year coverage on the QD-OLED monitor launched in 2022, and for its latest 27-inch 4K model coming this year. And in 2023, The Verges Sean Hollister asked LG to explicitly warrant the companys OLED monitors against burn-in and they agreed and changed their verbiage.A Samsung representative on this Best Buy product listing says the three-year warranty on the 32-inch Odyssey OLED G8 covers burn-in. Screenshot: The VergeSince then, companies like MSI and Asus have also pledged to cover OLED burn-in on some models, including their latest ones (in some countries). Its important to research the warranty included in the model youre buying to determine whether burn-in coverage is included. For instance, Samsungs website shows a general policy for its warranty that excludes burn-ins, however, an online rep confirmed it does cover it on a 32-inch Odyssey OLED G8. However, the company still hasnt clarified if burn-ins are covered for its latest 27-inch Odyssey OLED G8 gaming monitor.
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  • TOWARDSAI.NET
    Lets Build Simple RAG Application
    Lets Build Simple RAG Application 0 like January 27, 2025Share this postLast Updated on January 27, 2025 by Editorial TeamAuthor(s): Adipta Martulandi Originally published on Towards AI. Hands on Implementation RAG Application using LangchainThis member-only story is on us. Upgrade to access all of Medium.RAG PipelineLarge Language Models (LLMs) have revolutionized the way we interact with technology. Their ability to generate human-like text, answer questions, and process language has unlocked new possibilities across various industries. However, despite their impressive capabilities, LLMs have inherent limitations that can impact their effectiveness in real-world applications.One major drawback is their inability to access up-to-date or real-time information. Most LLMs are trained on static datasets that reflect the state of knowledge at a specific point in time. This means they cannot provide accurate responses about recent events, emerging trends, or newly published data. For instance, if an LLM was last trained in 2022, it would not be aware of events, advancements, or updates that occurred afterward.This limitation becomes critical when building applications that rely on current or domain-specific knowledge, such as financial forecasts, research insights, or live market data. In such cases, relying solely on pre-trained LLMs can lead to incomplete or outdated answers, undermining the applications utility.According to Whitepaper titled Agents by Google researcher, we can Enhanced our LLMs performance with several techniques:In-context learning: This approach equips a generalized model with a prompt, tools, and a few Read the full blog for free on Medium.Join thousands of data leaders on the AI newsletter. Join over 80,000 subscribers and keep up to date with the latest developments in AI. From research to projects and ideas. If you are building an AI startup, an AI-related product, or a service, we invite you to consider becoming asponsor. Published via Towards AITowards AI - Medium Share this post
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  • WWW.ELLEDECOR.COM
    10 Home Trends We Spotted During Paris Dco Off and Maison et Objet
    Each January, the design communitys most tasteful designers, editors, and style makers alike descend on Saint-Germain-des-Prs, the chic Parisian neighborhood known colloquially as The Sixth for Paris Deco Off, and head just outside the city to peruse Maison & Objet. The pair of interiors fairscombined with Paris's legendary flea markets, famed January sales, and profusion of world-class museumsmakes this time in the City of Light nothing short of a decorator's paradise. And, amid the bounty of newness, there were plenty of standout trends that emerged. I spied fantastical worlds with lush hand-embroidery and beaded details; eye-jolting stripes in unexpected color combinations; and beautifully textural meandering maze and wave patterns. Referencing one new collection, Ariane Dalle, the creative director of litis, said "[it] embodies the energy and confidence our spaces crave." Could there be a more fitting vibe for the year ahead? Here are the other home decor trends I spotted. Fantasy WorldsCourtesy the BrandsFrom left: A forthcoming collaboration by Cole & Son x Ardmore; Palm Paradis by Lala Curio.Creative directors have long played with scale, perception and whimsy when it comes to textile design. During this years fair there was an abundance of fantastical scenes brimming with the imagination inside the creative talent behind each brand. Oversixe embroidered fruits and dreamlike vegetation hang from a fictitious tree inspired by Mediterranean life created by Sacha Walckhoff at Christian Lacroix is aptly titled Otro Mundo. On the other side of town at an apartment overlooking the Jardin du Palais Royale, Cole & Son debuted a new collaboration with South African based Ardmore ceramic art. Various hand-painted and beaded fruits, birds, and vibrant wildlife populate the branches of this energetic scenic wallpaper celebrating the mysterious and majestic South African Baobab, envisioned under the direction of Marie Karlsson and officially launching this June. LaLa Curio, founded by Laura Cheung Wolf and a Paris Dco newcomer, debuted collections from an apartment overlooking the recently restored Notre Dame, including the vibrant world of Palm Paradis, depicting rich hand painted tropical motifs on Thai silk in the 2,000-year-old Gongbi painting technique and finished with hand embroidered beadwork, sequins, wooden beads, and raffia.Spiced-Up StripesCourtesy the BrandsFrom left: Cork Street stripe in Emerald by Designers Guild; Turban stripe in Lilac by Gert Voorjans for Jim Thompson; Tiva stripe in Russet by Romo.Nary a neutral stripe was spotted in town with many houses debuting sprightly stripes full of vim and vigor on a variety of ground cloths in a diversity of textures and sheens. From a new multicolor striped fabric from the creative mind of Tricia Guild of Designers Guild to a stylish pin stripe placed unexpectedly on a shimmering silk moir fabric, part of a new follow-up collection at Jim Thompson by Gert Voorjans. The designer, who is known for his decoration of the Dries Van Noten boutiques, noted, This collection represents a symbolic silk road journey from Bangkok to Paris, an haute couture concept featuring vibrant colors and contrasts that can work in a range of interiors, from classical to contemporary. Other striped highlights include a new textile collaboration with unique stripes by Fortuny x Chahan Gallery; fresh ticking stripe colorways at Romo; and bold velvet bias stripes suitable for upholstery at Nobilis. From where I'm seated, this year promises to be one of rayure audacieuse.Made to Measure courtesy DedarThe visionary powerhouse behind Dedar, co-owners and creative directors Caterina and Raffaele Fabrizio, have ingeniously taken into account how designers are ordering and using their fabrics on upholstery. Thus, they launched an assortment of smaller panels of beautifully designed fabrics the house is known for, saving designers time and yardage bills on projects that might only involve upholstering the back of a dining chair or the seat and back of a fauteuil only. This first-of-its-kind program will be of great service to the interior design community and brings a fine art sensibility to upholstery fabrics. Tie-Back StylingCourtesy the BrandsFor many, tie backs and trimmings never went away, but its become quite clear that tie-backs are certainly having a having a moment. There is a louche luxe sentiment to this look, and it popped up everywhere from the refurbished and recently reopened Htel de la Marine (home to the original Garde-Meuble, the office managing the furnishings of all royal properties), to a jewel box apartment decorated by de Gournay in Saint Germain des Prs. In a more contemporary spirit, the original Jean Royere Parisian apartment is divided with a poetically draped sheer from Prelle, and Uchronia created custom leather hands to hold back the lavish draperies at their installation in Hall 6 of Maison & Objet. Samuel and Sons debuted Kaleidescope, an energetic and innovative trimmings collection with passementerie artist and designer Elizabeth Ashdown. Celebrating craftsmanship and unexpected, vibrant color, each piece of the collection was designed by hand using centuries-old techniques. Color weaves narratives, evokes emotions, and reflects identity. Ashdown noted. Vibrant color combinations have the power to transform spaces into energetic expressions of individuality and joy.Pottery PrintsCourtesy the BrandsFrom left: de Gournay, Designers Guild, Osborne & Little.As an editor and stylist, I am always seeking new inspiration when it comes to floral arrangements and I am delighted not to have to look any further than these brand new wallpaper and textiles introductions. Osborne & Little debuted Sundara, part of an new collection of captivating fabrics drawing inspiration from the natural world. Designers Guild took inspiration from Delft pottery and showcased an eclectic mix of illustrative floral fabrics, with pottery motifs taking center stage. De Gournay also debuted Pietra Dura, a hand painted interpretation of stone marquetry common in 16th- and 17th-century Florentine courts.From left: de Gournay, Designers Guild, Osborne & LittleImmersive ExperiencesConstance E.T. De TournielFrom Left: Scenes from Voyages aux Bahamas and Pierre Frey. Just off the beaten path down a cobblestone road, you find yourself at the doorstep of quintessential Parisian townhouse, Htel de Guise. This month, it was the home of the debut of the Dserts collection, which inluded fabrics, wallpapers, carpets, and rugs along with a new range of plains, including Chroma, a flag display created in collaboration with India Mahdavi. The somewhat crumbling property created a dramatic foil to the rich textiles gracing every inch of the interior, which was fully transformed with scenography designed by Elizabeth Leriche. Tented rooms, portieres, pelmets, and sleeping nooks abounded.Tucked away on a curved street the size of an alley, an immersive exhibition titled Voyages aux Bahamas was presented by Galerie Vauclair, Rouge Absolu, and Toulemonde Bochart. Vintage wicker and prominent antiques mixed with contemporary carpets featuring natural scenes from the lush, tropical forests of the Bahamas created an alchemy of natural wonder. On the Right Bank, meanwhile, Jean Royere installed its novelties inside the original apartment once owned by the house's namesake French designer. Being immersed in the world of Jean, one of Frances leading figures of 20th century decorative arts, one can see how his traditional methods produced refined, timeless and comfortable furnishings. Taking a typical Parisian elevator (for one) up to the apartment and walking through the front door is to be transported to a world filled with personality, original artworks, Jeans own sketches and drawings, as well as the original, simple furniture he had picked up and brought home over the years. Wit and WhimsyCourtesy L'ObjetLOBJETs creative director Elad Yifrach debuted a new collaboration with South African artist Ruan Hoffman who is known for imbibing his ceramic earthenware with unfiltered emotion and an elevated playfulness. Each piece in the collection features LOBJETs commitment to craftsmanship and witty, thought-provoking work inherent to Yifrach and Hoffman's art and design philosophies. No surprise, this spirited collection resulted from an Instagram DM. Graphic PatchworkCourtesy the BrandsFrom left: Stampa is printed on a hand-woven raw silk; Ground by Larsen; Hexa by Fortuny.These bold, graphic black-and-white patterns feel like go-anywhere neutrals and would make impeccable upholstery or drapery. From Larsen to Pollack to Fortuny, each design is reminiscent of patchwork, books lined up on shelves, or even palm braiding, all exuding a distinctive texture and sense of architectural beauty. Lavender HazeCourtesy the BrandsClockwise, from left: Dedar, Rubelli, Jim Thompson.From a color perspective, one shade of purple stood out: Lavender. While this editor often struggles with shades of purple, it felt exhilarating to see shades of lavender popping up in unexpected places. Case in point: a lavender animal print from Gert Voorjans for Jim Thompson; a low slung sectional in a delicious satin at Dedars showroom; and a bold lavender with a large criss-cross stitch by Rubelli. Surrealist Twists and TurnsFELIX DOL MAILLOTTraveling out to Maison & Objet, the standout trend was defined by Uchronias conceptual hotel installation inspired by Surrealism. The ELLE DECOR A-List studio's fresh take on hospitality turns conventions on its head and puts fine art and design at the forefront when it comes to creating commercial, hotel spaces. A dreamlike experience, the installation takes the viewer on a journey through concepts that play with our notions of convention, like a sloped bed that defies gravity, a chic and colorful gym with larger than life figures and transitional spaces lined in bold fabrics by Casamance that offer delightful sensory experiences.
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  • 9TO5MAC.COM
    Pebble reviving e-ink smartwatch with iPhone support, touting 16K custom watch faces to Apples zero
    Eric Migicovsky, the founder of Pebble, announced plans to bring the e-ink smartwatch back to market. Why now? Migicovsky cites the lack of a similar smartwatch that meets his needs. In making the announcement, the Pebble founder turned re-founder took the opportunity to poke fun at Apple for still not allowing third-party watch faces to run on the Apple Watch.Migicovsky says hes working to bring Pebble watches back to the market because no other product meets this criteria (in his words):Always-on e-paper screen(its reflective rather than emissive. Sunlight readable. Glanceable. Not distracting to others like a bright wrist)Long battery life(one less thing to charge. Its annoying to need extra cables when traveling)Simple and beautiful user experience around a core set of features I use regularly (telling time, notifications, music control, alarms, weather, calendar, sleep/step tracking)Buttons!(to play/pause/skip music on my phone without looking at the screen)Hackable(apparently you cant even write your own watchfaces for Apple Watch? That is wild. There were >16k watchfaces on the Pebble appstore!)While the viability of Pebble 2.0 in 2025 is uncertain, you have to give it to the guy for using a common Apple Watch complaint as a selling point.Of course, when it comes to watch faces, the Pebble is like a Kindle, while the Apple Watch is like an iPad. Still, I hope it works out for the new Pebble!It sounds like the new hardware will be as close to the original hardware as possible. And despite Fitbit obtaining Pebbles intellectual property before being bought by Google, the new Pebble can run its original OS thanks to open sourcing by Google. The Pebble founder even says an iOS version of the Cobble app that works with the smartwatch is coming soon to iPhone. Pebbles old legacy app supported iPhone, but it has long been defunct.Prior to the Apple Watch release, I was a happy Pebble user myself. I knew I wanted a smartwatch that could play music and podcasts, not just control them, and I really wanted Siri voice control and the ability to reply to message notifications. Nevertheless, I get that the smartwatch hasnt replaced the smartphone, and having a different kind of smartphone satellite could be appealing.Show your interest for the return of Pebble at repebble.com. Ive now said pebble so many times in my head that the sound of the word has lost all meaning. Speaking of sound, Apple Watch does include a tone thats actually called pebbleBest Apple Watch and accessoriesAdd 9to5Mac to your Google News feed. FTC: We use income earning auto affiliate links. More.Youre reading 9to5Mac experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Dont know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel
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  • 9TO5MAC.COM
    iOS 18.3: Here are Apples full release notes
    As we reported earlier, iOS 18.3 is now available to everyone. While weve already gone in-depth on everything new, head below for the full details from Apple on the release notes for iOS 18.3Here are the full release notes for iOS 18.3 straight from Apple: Visual intelligence with Camera Control (All iPhone 16 models)Add an event to Calendar from a poster or flyerEasily identify plants and animalsNotification summaries (All iPhone 16 models, iPhone 15 Pro, iPhone 15 Pro Max)Easily manage settings for notification summaries from the Lock ScreenUpdated style for summarized notifications better distinguishes them from other notifications by using italicized text as well as the glyphNotification summaries for News & Entertainment apps are temporarily unavailable, and users who opt-in will see them again when the feature becomes availableThis update includes the following enhancements and bug fixes:Calculator repeats the last mathematical operation when you tap the equals sign againFixes an issue where the keyboard might disappear when initiating a typed Siri requestResolves an issue where audio playback continues until the song ends even after closing Apple MusicWhat are you most looking forward to trying with iOS 18.3? Let us know down in the comments.My favorite iPhone 16 accessories:Add 9to5Mac to your Google News feed. FTC: We use income earning auto affiliate links. More.Youre reading 9to5Mac experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Dont know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel
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  • FUTURISM.COM
    Nvidia Responds to Getting Hit in Face With Shovel
    AI chipmaker Nvidia has finally broken its silence following the firm setting a new record for the biggest single-day loss of any company in history.Chinese startup DeepSeek made a major splash over the last few days, claiming that its AI chatbot can rival the best OpenAI has to offer but at a tiny fraction of the cost. It also happens to be open source and free for all to use.The announcement sent ripples across the industry, sparking a global selloff. The tech sector overall is on track for a "$1 trillion wipeout."Nvidia, which develops and sells the chips AI companies use to train their increasingly compute-intensive models, has chosen the high road even after the startup eviscerated its stock."DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling," an Nvidia spokesperson told CNBC today.Put simply, test time scaling refers to a new trend in the AI world allowing models to test and verify different responses before arriving at a final answer, a primitive form of "reasoning" that can lead to more reliable answers. Both OpenAI's o1 model and DeepSeek's latest R1 model make use of forms of test-time scaling."DeepSeeks work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant," the spokesperson added.It's a strikingly measured response, considering the sheer amount of money at stake.Further complicating the situation is that DeepSeek is reportedly making use of a capped version of Nvidia's ever-popular H100 AI chip, called the H800, which was designed for the Chinese market. That's despite the US government banning the export of both chips in late 2023.Today's stock bloodbath highlighted widespread skepticism over soaring costs in the AI industry. Just last week, US president Donald Trump touted an AI infrastructure project dubbed Stargate, which aimed to raise $500 billion in just four years,with Meta CEO Mark Zuckerberg committing to spending $60 billion of his own on AI this year.But DeepSeek's claims have investors spooked, leading to some tough questions: have they been massively overspending? And when will generative AI actually break even, if ever?Some analysts are hopeful that DeepSeek's advancements could clear a slightly less murky path to profitability."If model training costs prove to be significantly lower, we would expect a near-term cost benefit for advertising, travel, and other consumer app companies that use cloud AI services, while long-term hyperscaler AI-related revenues and costs would likely be lower," Bank of America Securities analyst Justin Post wrote in a note, as quoted by CNBC.Nvidia's statement doesn't appear to have immediately calmed investors. The company's shares have yet to rebound, cementing a catastrophic 16 percent loss (although to put the ascendant AI sector in perspective, that's just four months of gains.)DeepSeek's explosion onto the scene has left a massive black eye, and OpenAI is likely still reeling from the whiplash. CEO Sam Altman has been noticeably quiet since DeepSeek rocketed past ChatGPT to score the top iPhone App Store spot.In short, the dust hasn't even begun to settle as investors are forced to do some serious soul-searching.More on DeepSeek: Trump Embraced AI and It Exploded Spectacularly in His FaceShare This Article
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