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šA New Contender in AI
PLUS: ByteDance Skirts Chip Ban

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Key Points
DeepSeek V3 outperforms major AI models like Metaās Llama 3.1 and OpenAIās GPT-4o in benchmarks.
Built with 671 billion parameters, itās 1.6 times larger than Metaās Llama 3.1.
šØš»āš»News - A Chinese lab has unveiled one of the most powerful open AI models yet: DeepSeek V3. Developed by DeepSeek, the model launched last week under a permissive license that lets developers download, modify, and even use it for commercial purposes.
šµš»āāļøHow does it compare? DeepSeek V3 excels in tasks like coding, translating, and writing essays from descriptive prompts. Internal benchmarks place it ahead of both open and closed models, including Metaās Llama 3.1 405B, OpenAIās GPT-4o, and Alibabaās Qwen 2.5 72B.
Notably, it dominated Codeforces programming competitions and Aider Polyglot, a test for writing new code that integrates seamlessly with existing projects.
š¤Whatās more? DeepSeek V3 is built on a massive 14.8-trillion-token dataset, representing nearly 11 trillion words. Its architecture includes 671 billion parameters (685 billion on Hugging Face), making it 1.6 times larger than Metaās Llama 3.1. While bigger models often perform better, they also require more powerful hardware. Running DeepSeek V3 at its best needs a setup of high-end GPUs.
Even so, DeepSeek managed to train this model in just two months using Nvidia H800 GPUsādespite U.S. export restrictionsāand spent only $5.5 million, a fraction of whatās typically required for models of this scale.
Key Points
The company sidesteps restrictions by storing chips in data centers outside the U.S., like in Southeast Asia.
āNews - TikTok parent company ByteDance is planning a major purchase of Nvidia chips in 2025, despite ongoing U.S. restrictions on Chinese companies acquiring American AI hardware.
ByteDance intends to spend $7 billion on Nvidiaās high-performance chips, potentially making the company one of the largest owners of these sought-after components.
The move is seen as an effort to strengthen ByteDance's AI capabilities as competition in the global tech market heats up. Despite U.S. efforts to block Chinese access to such technology, ByteDance appears undeterred in its ambitions.
āæThe loophole that changes everything - ByteDance is circumventing the restrictions by using a strategic loophole. Instead of directly importing the chips to China, the company plans to store them in data centers located in regions outside the U.S., such as Southeast Asia.
ByteDance has stated that it is fully compliant with U.S. export control rules, adding, āByteDance has not bought H100s for its data centers outside of the U.S. since the relevant U.S. export control rules took effect.ā This approach technically adheres to U.S. regulations, as the chips are not being used within China.
šš»āāļøWhat else is happening?
Microsoft and OpenAI have a financial definition of AGI // The two companies reportedly signed an agreement last year stating OpenAI has only achieved AGI when it develops AI systems that can generate at least $100 billion in profits
Google CEO says AI model Gemini will be the companyās ābiggest focusā in 2025 // āScaling Gemini on the consumer side will be our biggest focus next year,ā he said
Nvidia completes acquisition of AI infrastructure startup Run:ai // As part of the merger, Run:ai said its software, which currently only works with Nvidia products, will be open sourced, meaning Nvidia rivals like AMD and Intel will be able to adapt it for their hardware
OpenAI failed to deliver the opt-out tool it promised by 2025 // OpenAI has yet to give an update on Media Managerās progress, and the company missed a self-imposed deadline
š©š¼āšDiscover mind-blowing AI tools
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