
Core Insights - The article highlights the emergence of DeepSeek as a significant player in the AI landscape, particularly in Silicon Valley, where it is considered a "can't say" secret due to its cost-effectiveness and performance compared to Western models like OpenAI and Anthropic [14][15][23] - Paddy Cosgrave, CEO of Web Summit, emphasizes that China's AI competition is likely to surpass that of the United States, driven by a combination of high citation rates in core journals and the presence of Chinese talent in Silicon Valley [11][16] - The article discusses the rapid influx of venture capital into AI, leading to the creation of numerous unicorns with substantial annual recurring revenue (ARR) in a short time [11][12] Company Insights - DeepSeek is noted for its free model that has gained widespread adoption among companies in San Francisco, even those not traditionally involved in AI [14][15] - Lovable, a European AI unicorn, achieved $100 million in ARR within eight months, showcasing the competitive landscape where companies feel the need to work harder to outperform Chinese counterparts [12][19] - The article mentions the cultural differences in work ethic, with European companies adopting a "997" work culture to compete with Chinese firms, which may escalate to "998" [19] Industry Trends - The article indicates that AI will become as ubiquitous as electricity, with companies providing the necessary infrastructure (computing power, bandwidth, storage) likely to be the most profitable [17] - It also points out that while many companies will make money in AI, only a few will reach valuations in the hundreds of billions, suggesting a potential bubble in the AI sector in the West [17] - The ongoing chip export controls from the U.S. to China are seen as a challenge for Chinese startups, yet companies like DeepSeek are still making significant advancements despite these restrictions [17][18] Cultural Insights - Cosgrave predicts that the next wave of innovation in China will focus on soft power, including cultural exports like films, anime, and toys, similar to Japan's historical trajectory [26][27] - The article illustrates a growing interest among younger generations in Western countries towards Chinese brands and culture, indicating a shift in perception [22][27]