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Scrape an AI model to Build Another
& Jevons Paradox
‘Copy-Cat’ Deep-Seek?
OpenAI has accused Chinese AI start-up DeepSeek of illicitly using its proprietary models to train a competing open-source system. The allegation centers on "distillation," a method where developers enhance smaller models by leveraging outputs from more advanced ones. While common in AI development, OpenAI contends that DeepSeek's application of this technique breaches its terms of service, which prohibit using its outputs to develop rival models. DeepSeek's recent release of its R1 reasoning model has raised eyebrows, achieving performance metrics comparable to leading U.S. models at a fraction of the cost. This development has not only surprised industry observers but also impacted market dynamics, with Nvidia's shares experiencing significant fluctuations amid concerns over reduced demand for high-end AI hardware.
White House AI chief David Sacks also claimed there is "substantial evidence" that Chinese startup DeepSeek relied on OpenAI’s model outputs to build its own technology. Speaking to Fox News, Sacks explained the technique of distillation, where one AI model is trained using the outputs of another to replicate its capabilities. He added that the growing buzz around DeepSeek will push U.S. AI firms to crack down on distillation to curb the rise of what he labeled as “copycat” models.
Boom’s XB-1 becomes first civil aircraft to go supersonic -Blake Scholl's High-Speed Journey
In a groundbreaking achievement, Boom Supersonic's XB-1 has become the first civil aircraft to break the sound barrier since the Concorde's retirement (after an Air France Flight crash in 2000). This milestone is the brainchild of Blake Scholl, who founded Boom Technology in 2014. Boom Supersonic is developing the Overture, a supersonic airliner designed to fly at Mach 1.7, potentially reducing flight times between New York and London to approximately 3.5 hours. The company has secured orders and pre-orders for 130 aircraft from major airlines, including American Airlines, United Airlines, and Japan Airlines and plans to commence passenger flights by 2029, with the Overture being manufactured at their Superfactory in Greensboro, North Carolina.
Before venturing into aerospace, Scholl co-founded Kima Labs, a mobile payment company that was acquired by Groupon in 2012. He later participated in Y Combinator's Winter 2016 batch to further develop Boom's vision. Scholl's transition from e-commerce to aviation underscores his diverse entrepreneurial spirit. Reflecting on the current state of air travel, he remarked, "We are living in the dark ages of flight." With the XB-1's successful supersonic flight, Boom Supersonic aims to revolutionize air travel, making high-speed journeys more accessible and efficient.
Jevons Paradox is the latest jargon you need to know to signal you’re smart on AI
Per the Wikipedia page:
“...the Jevons paradox occurs when technological advancements make a resource more efficient to use (thereby reducing the amount needed for a single application), however, as the cost of using the resource drops, overall demand increases causing total resource consumption to rise.” The original example posited by Mr. William Stanley Jevons, summarized nicely by Axios, was coal. Progress in steam engines, which enabled them to use less coal, didn’t lead to a drop in coal demand — it led to a huge rise.
Though a bit of an oversimplification, that is essentially the crux of the current debate in AI: DeepSeek reportedly achieved something for a lot less money and resources than US competitors like OpenAI and Meta used (until proven otherwise). That could be interpreted in two ways:
We will therefore need fewer high-tech chips like the ones Nvidia makes, and fewer energy plants to power them (which is why power and data center stocks got hammered this week); Or, and this is where the Jevons Paradox comes in, we will want even more. The market seemed to follow the first school of thought on Monday, but came around to the second by Tuesday, with chip analysts and tech heavyweights, most notably Microsoft’s CEO Satya Nadella, citing the paradox as proof that AI use will “skyrocket.”