1/31/2025

Trump's Stargate returns to Hollywood

 During Trump's inauguration, he lined the first row with the tech billionaires and announced a US$500b AI infrastructure project called Stargate. This project lasted one day when China released the DeepSeek app that cost US$5.5m, yes millions not billions, to develop. This new app makes a mockery of all the billion dollar American AI apps and the multi million dollar salaries of the CEOs of these companies.

China is telling Trump and the Americans that AI apps could be developed very cheaply and Trump needs not waste US$500b to build the infrastructure. At most 10% or less would do the job. Trump should therefore return the script to Hollywood, oops to the tech billionaire with vested interest in spending big money.

For the last few years. the tech CEOs have been playing a game of building a very expensive wall using the most expensive Nvidia chips around the AI industry. They have created a myth that only with plenty of expensive and advanced chips could one succeed in developing high performance AI apps like OpenAI, ChatGPT and so on. It was a lie that they created to con and deter other companies and developers from entering the industry. The multi billion dollar wall is their barrier to entry into the game, keeping small and financially weak participants out of the game. This is how they want to dominate and monopolize the industry for themselves. The hype was to throw in billions after billions to frighten off aspiring developers and companies. Another way of looking at it is that they did not have a clue of what AI is all about, thinking that it is so complex and only billions of dollars can make it work.

DeepSeek called their bluff. It required only a fraction of the billions to develop a comparable app that is just as good and better for the mass market. And DeepSeek even make its app available for free, open source, to undercut what the tech giants were trying to do to monopolise the industry. All the aspiring developers and companies are rushing in to develop their own apps with cheaper and less advanced chips like DeepSeek. The game is now open to all and sundry, and DeepSeek is showing them how to do it. 

With one stroke, the lies of the big tech CEOs were exposed. They might be able to con Trump but not the tech geeks. Now they have nowhere to hide and looking not only stupid but have to answer for the billions they have spent on something that could be so cheap. Trump would have to revise his US$500b budget or he would look foolish. No one would give him that kind of money when the truth is out. Trump must be furious. How dare the tech CEOs lied to him and made a fool of him. US$500b is now looking so ridiculous to talk about. His Stargate should be called Stardust.

9 comments:

Anonymous said...

WASHINGTON: Two US Congress members are calling on President Donald Trump's administration to consider restricting the export of artificial intelligence chips made by Nvidia, alleging Chinese AI firm DeepSeek has relied on them.

Republican John Moolenaar and Democrat Raja Krishnamoorthi, who lead the House Select Committee on China, asked for the move as part of a Commerce and State Department-led review ordered by Trump to scrutinise the US export control system in light of "developments involving strategic adversaries". CNA

Clueless and silly American politicians still think it is the chips that matters. Yes, but only half the truth. It is the brain power of the tech talents that matters most. They are having a Dugatti but do not know how to drive it to its best performance.

Anonymous said...

China won't hide its strength anymore, in message to the West . . .

https://www.youtube.com/watch?v=aXEvG9eKq7A

Anonymous said...

It is the same narrative that our great LKY sell to sillyporean, that is, to paid the highest salary to white papies to run sinkieland. Maybe we should get those governor that run china provinces to run sinkieland instead & at a fraction of the cost.

Anonymous said...

People are saying all the investments in AI in the USA is a scam, especially in the amount of money being thrown into those projects. This has just been shown by the multi-billion war chest needed to fund all the projects in the USA compared to DeepSeek's meager US$5.5 million funding.

I would expect a fiery counter against this accusation without a doubt. Nothing is ever wrong in the USA. Anything wrong is the fault of outside parties, like Russia and China.

Anonymous said...

US$500 billion is a huge subsidy instead of calling it a project. And the USA keeps harping on Chinese Government subsidies that are miniscule in comparison. Check it up and do the math!

Anonymous said...

It looks like Chinese AI developers are not floored by the multi-billion investors in the USA. David is telling Goliath to bring it on.

Anonymous said...

US targeting its strong ally Singapore for not being anti-China enough . . .

In a letter to National Security Adviser Mike Waltz on Jan 29, Republican John Moolenaar and Democrat Raja Krishnamoorthi, who lead the House of Representatives Select Committee on China, said: “Countries like Singapore should be subject to strict licensing requirements absent a willingness to crack down on PRC transshipment through their territory.”

Anonymous said...

OpenAI is accusing DeepSeek of stealing its 'proprietary operation output' model. Why output model and not talking about its input model, which is realistically stealing all the information from the internet, books and research papers in order to work effectively? Now I am beginning to understand that it is their' input' model of stealing information that it really does not want to divulge to elicit lawsuits, when such stolen information is discovered.

OpenAI is now facing a lawsuit in India filed by Indian and international book publishers over copyright infringements, in other words 'stealing of information' to put it more starkly. India is a big market for OpenAI and Sam Altman has thought it necessary to fly to India to sort this out. Any legal tussle emerging from this episode in India is bound to open up a 'Pandora's Box' of litigation if exposed globally.

In other words, OpenAI is stealing all the information needed to run its system and that applies to every AI running entity. All AI outfits are stealing information from others to be up to date. It really is a thief calling a thief, if one were to consider all the information gathering that AI is doing to be able to work effectively.

So, by accusing DeepSeek of theft, isn't that what they are all doing in order for their AI system to work?

Virgo49 said...

All these billions are just inflated and jacked up accounts and fundings that goes into all these Oilymen, oops Oligarchs and CON-gress Men and Women and SENILE-nators pockets and banks

The Investors of Imbeciles especially those of Sovereign Funds and their Shares and Stake Holders are laughing all.the way to their Banks.

Techno Stocks and Shares are just empty bubbles with no fundamentals like other businesses.

Just illusionary Apps that needed siphoning and selling to Customers who needed them.

Just like Insurance Companies Papers for Monies.