😲 Chinese DeepSeek shocked Silicon Valley

Also: Meta’s AI growth plan includes 1.3 million GPUs

Author

Evolving AI
January 27, 2025

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Welcome, AI enthusiasts

Deepseek AI is proving that speed and efficiency can outmatch even the largest companies. Meta is spending billions to increase its computing power. And Apple is shifting focus, bringing in new leadership to make Siri smarter. Let’s dive in!

In today’s insights:

  • How Deepseek AI is outpacing tech giants

  • Meta’s AI growth plan includes 1.3 million GPUs

  • Apple’s AI shift brings smarter Siri and new leadership

Read time: 4 minutes

🗞️ LATEST DEVELOPMENTS

Source: Deepseek

Evolving AI: Chinese startup Deepseek is building top-level AI models that compete with industry leaders while spending far less money.

Key Points:

  • Deepseek’s AI models match or beat OpenAI’s o1 and GPT-4o without a huge budget.

  • The team focuses on AI research instead of making quick profits.

  • They bought over 10,000 Nvidia A100 GPUs before U.S. export rules changed

Details:

Deepseek is proving that small teams with sharp ideas can challenge big tech. Their latest model, Deepseek-V3, has beaten top AI systems in tests. Earlier versions already showed they were serious competition. Liang Wenfeng, the founder, started in finance but shifted to AI by investing in large-scale computing.

Instead of rushing to sell their technology, Deepseek runs like a research lab. Their offices in Beijing and Hangzhou feel more like universities. The team is made up of PhD students and top graduates working on AI breakthroughs. High-Flyer, Wenfeng’s hedge fund, pays for everything, so they don’t have to chase investors.

Why It Matters:

Deepseek’s success shows that a small team with the right focus can compete with billion-dollar companies. Their open-source work forces AI firms in the West to rethink their strategy.

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Source: Getty Images

Evolving AI: Meta is growing its AI power with more GPUs and bigger data centers. The company plans to expand fast in 2025.

Key Points:

  • Meta will have 1.3 million GPUs in its data centers by the end of the year.

  • It expects to spend $60-80 billion on AI in 2025.

  • One gigawatt of computing power will go online, equal to what 750,000 homes use.

Details:

Mark Zuckerberg says Meta is making a big push in AI. By the end of 2024, the company will have 1.3 million GPUs running in its data centers. To support this, spending will jump to as much as $80 billion next year, nearly double last year’s budget. Most of this money will go into AI research and new data centers.

Meta is also adding a huge amount of computing power. One gigawatt will go online, equal to the power use of 750,000 homes. AI competition is heating up, with Microsoft and OpenAI also making big investments in data centers.

Why It Matters:

AI models need more computing power as they get more advanced, and Zuckerberg’s announcement shows they're here to compete for the long run.

Evolving AI: Apple is bringing in Kim Vorrath, a longtime leader, to help improve its AI and upgrade Siri.

Key Points:

  • Kim Vorrath, an Apple veteran, is now a key leader in the AI team.

  • Apple is working on better AI models and a stronger Siri system.

  • A big Siri update in iOS 18.4 will help it understand screens and take action.

Details:

Apple is making AI a bigger focus by moving Kim Vorrath into the AI division. Vorrath has been at Apple for 36 years and helped launch major products like the original iPhone and Vision Pro. Her shift to AI shows Apple wants to improve Siri and AI features.

The AI team is working on a new Siri that understands what’s on the screen and responds with actions. This update, expected in iOS 18.4, could make Siri more useful. At the same time, Apple is pausing its AI-powered news summaries after reports of mistakes.

Why It Matters:

Apple has fallen behind in AI compared to OpenAI and Google. A better Siri could help Apple compete with smarter voice assistants and improve how people use Apple devices. If Apple succeeds, Siri could quickly become the most used AI assistant as billions are using the Apple ecosystem on a daily basis. Let’s see if they will get there.

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