The World Economic Forum is calling for more direct action to end the pending food crisis. Amazing how that is timed with Oregon and Idaho water restrictions and Michigan Avian Flu crisis. Want fries with the grasshopper burger?
If You Read Cultural Courage Last Week You Did Your Homework For This Episode
NVDIA Stock Lost Nearly 600 Billion in Value
NVDIA produces a specialized, powerful computer processing chip called a GPU that focuses on computational intensive algorithms for graphics and Artificial Intelligence. It is at the heart of the computations that OpenAI ChatGPT, Google’s Gemini and Anthropic’s Claude AI use to create Large Language Models (LLM). These models are what answer the questions and perform tasks, and they require massive amounts of processing and therefore electricity.
A New AI LLM from China called DeepSeek, released for free use, was trained using inferior GPUs for far less money.
Biggest Market Loss In History: Nvidia Stock Sheds Nearly $600 Billion As DeepSeek Shakes AI Darling
Nvidia lost $589 billion in market capitalization Monday, which is by far the single greatest one-day value wipeout of any company in history, more than doubling the $279 billion market cap lost by none other than Nvidia on Sept. 3, 2024 (Meta’s $251 billion loss Feb. 3, 2022 is the third-biggest daily loss).
NVDIA is allowed to sell slower H800 Chips. There may be an incentive not not disclose the truth due to export restrictions. But regardless, the training time and cost for DeepSeek less.
DeepSeek’s model was trained on Nvidia’s GPUs, like most other advanced AI programs. But the Chinese company said it spent just $5.6 million on Nvidia technology to develop its large-language model, and though experts speculate this is a gross underestimate, it still upsets the core thesis behind Nvidia stock’s meteoric rise.
NVDIA chips are made in Taiwan by Taiwan Semiconductor
Stragate Project Threatened With DeepSeek?
Why are all the BILLIONS needed when a company of 200 can create results that are nearly as good?
Stargate project championed by OpenAI, SoftBank, Oracle, and MGX consortium and will be a $500 billion of private investment. SoftBank and MGX are the financiers, with Masayoshi Son, CEO of SoftBank, promising $100 billion ready for utilization immediately. MGX is an investment firm launched by the Abu Dhabi government that focuses on high tech startups, with the board of directors helmed by Sheikh Tahnoun bin Zayed al Nahyan. Nahyan was not present for the press conference. It’s interesting that MGX has also invested in xAI, Musk’s alternative to OpenAI’s mainline product ChatGPT.
OpenAI Needs It’s Monopoly Protected – The NSM WAS the Key
What DeepSeek Achieved
DeepSeek is the Number One App on the App Store
Simply put, to use an online LLM has just gotten cheaper. It’s $60 Dollars for roughly $700,000 words for OpenAI’s ChatGPT. DeepSeek is $2.19
https://www.businessinsider.com/deepseek-number-one-app-apple-store-openai-chatgpt-2025-1
DeepSeek Hit Number One In the App Store
White House National Security Memorandum On Artificial Intelligence
The White House has issued a National Security Memorandum and plant to prioritize Artificial Intelligence as a national security priority. This is a different approach than last year when Executive Order 14110 stated that AI was a safety concern with respects to DEI objectives, making AI development progress a civil rights issue. This Executive Order, issued by President Biden on October 30, 2023, aims to govern the development and use of AI in a manner that prioritizes safety, security, and trustworthiness while harnessing its potential benefits and mitigating its risks. At the time the objectives included:
- AI systems must undergo rigorous testing and evaluation to mitigate risks before deployment, including addressing security concerns in areas like biotechnology, cybersecurity, and critical infrastructure.
- The order mandates that AI development and deployment must comply with all Federal laws and promote equity and civil rights, prohibiting AI use that disadvantages vulnerable communities.
- enforcing existing consumer protection laws, implementing safeguards against fraud, bias, discrimination, and privacy violations, especially in critical sectors like healthcare, finance, and education, where AI errors could have significant negative consequences.
- United States’ commitment to leading global efforts to manage AI risks, unlock its potential, and promote common approaches to shared challenges, engaging with international allies and partners to develop a responsible AI framework and foster international collaboration.
For example, there are studies now that claim AI reinforces bias in mortgage loans.
As AI takes the helm of decision making, signs of perpetuating historic biases emerge
Now AI is strategic to national defense
The Memorandum lays out the following objectives:
- Leading the world in safe, secure, and trustworthy AI development: This involves strengthening the US AI ecosystem, securing foundational capabilities, and mitigating risks posed by AI systems
- Harnessing AI, with appropriate safeguards, to achieve national security objectives: This includes recognizing AI’s limitations, respecting democratic values, and adapting policies and infrastructure to effectively utilize emerging AI capabilities
- Cultivating a stable and responsible framework for international AI governance: This objective emphasizes fostering safe and trustworthy AI development and use globally, managing risks, and promoting democratic values and human rights
- The NSM directs actions to improve the security and diversity of chip supply chains, and to ensure that, as the United States supports the development of the next generation of government supercomputers and other emerging technology, we do so with AI in mind.
- This NSM makes collection on our competitors’ operations against our AI sector a top-tier intelligence priority, and directs relevant U.S. Government entities to provide AI developers with the timely cybersecurity and counterintelligence information necessary to keep their inventions secure
- The NSM directs the creation of a Framework to Advance AI Governance and Risk Management in National Security
- Among other actions, it directs agencies to propose streamlined procurement practices and ways to ease collaboration with non-traditional vendors
Do Not Be Deceived By AI Companies Claiming That They Have Democratic Values – Free Speech Is Absolute
OpenAI’s Global Policy Director Chris Lehane is Democratic Political Consultant who is responsible for Hillary’s statement of “vast right wing conspiracy. While DeepSeek refuses to criticize the CCP, ChatGPT REFUSED to engage in discussions regarding Hunter Biden’s Laptop, and always steered conversations regarding Covid lockdowns to a positive conclusion.
Just like Elon’s statement Freedom of Speech, not Freedom of Reach is nuanced, censorship, this idea that the word democracy automatically confers freedom is a LIE.
The AI Data Centers Require Energy
Michigan just passed a bill which gave away taxes and fees on use of water for data centers. But Texas has more reliable electricity.
Renewable Energy IS NOT the answer, OpenAI seeks nuclear reactors to provide power.
While China leads the world in producing products in concert with electricity as the primary source of power for industry, the rely on coal to produce electricity. The green movement has been fooled by China as it finances fossil fuel production.
How do China and America think about the energy transition?
In 2023, the Chinese economy also used 81% more energy than the U.S. economy. With a population roughly one-fourth that of China’s, the United States consumes more than twice as much energy per person. However, China uses roughly 20% more energy per unit of GDP than the United States.
We have to understand that renewable energy does not provide a consistent sustained level of utilization. So it’s fine for the general population to use, who will put up with brownouts and blackouts. China imports its fossil fuels, and generates its electricity from coal.
The differences in the two countries’ energy supplies carry over to their electricity generation systems. The primary fuel for electricity generation in the United States is natural gas, while coal dominates electricity generation in China. In fact, China generates much more electricity from coal than the United States generates from all sources combined. The United States’ enormous domestic supply of natural gas and the resulting reliance on natural gas for electricity generation mean that the United States has much lower GHG emissions per unit of electricity generated, with an average of 369 grams per kilowatt hour (g/kWh) in the United States compared to 582 g/kWh in China in 2023.
