Most people probably don't realize how bad news China's Deepseek is for OpenAI. They've come up with a model that matches and even exceeds OpenAI's latest model o1 on various benchmarks, and they're charging just 3% of the price. It's essentially as if someone had released a mobile on par with the iPhone but was selling it for $30 instead of $1000. It's this dramatic. What's more, they're releasing it open-source so you even have the option - which OpenAI doesn't offer - of not using their API at all and running the model for "free" yourself. If you're an OpenAI customer today you're obviously going to start asking yourself some questions, like "wait, why exactly should I be paying 30X more?". This is pretty transformational stuff, it fundamentally challenges the economics of the market. It also potentially enables plenty of AI applications that were just completely unaffordable before. Say for instance that you want to build a service that helps people summarize books (random example). In AI parlance the average book is roughly 120,000 tokens (since a "token" is about 3/4 of a word and the average book is roughly 90,000 words). At OpenAI's prices, processing a single book would cost almost $2 since they change $15 per 1 million token. Deepseek's API however would cost only $0.07, which means your service can process about 30 books for $2 vs just 1 book with OpenAI: suddenly your book summarizing service is economically viable. Or say you want to build a service that analyzes codebases for security vulnerabilities. A typical enterprise codebase might be 1 million lines of code, or roughly 4 million tokens. That would cost $60 with OpenAI versus just $2.20 with DeepSeek. At OpenAI's prices, doing daily security scans would cost $21,900 per year per codebase; with DeepSeek it's $803. So basically it looks like the game has changed. All thanks to a Chinese company that just demonstrated how U.S. tech restrictions can backfire spectacularly - by forcing them to build more efficient solutions that they're now sharing with the world at 3% of OpenAI's prices. As the saying goes, sometimes pressure creates diamonds.

NEWS: Ryanair calls for limit of two alcoholic drinks at airports in Europe. The airline has called on European authorities to bring in new curbs on alcohol to stop passengers getting drunk before boarding a plane.

👀Finland/Estonian undersea cable has been cut on Christmas. The Estlink Two is 1 of 2 cables connecting the Baltic power grid to Finland.🇨🇳ship Xin Xin Tiang crossed the cable at noon local time. This is the third time that a Chinese ship is suspected of involvement in cable cut

The Gargoyle Midget goes full deranged maniacal dictator and says he invaded Ukraine because he is bored.

Germans have lost faith in Olaf Scholz and his Social Democrats on most issues. Where might Germany’s politics go next?

This wasn’t necessarily the most diplomatic of speeches at the OSCE Ministerial in 🇲🇹 , but it was certainly truthful, to the point and effective. @radeksikorski 🇵🇱