Cheaper to build and run, it turned the AI world upside down by challenging the fundamentals.
We knew that artificial intelligence is -- in one of the most overused phrases of the era -- a game changer.
We knew that companies would use it to improve their communications.
We figured students would use it to cheat on homework and tests.
We estimated that athletes would use it to chart workouts, cooks to learn new recipes and musicians to help write their songs.
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We even knew that scammers would use its exceptional tools to ramp up their activities. Until only a few years ago, one sure way to catch fake letters by scammers was grammar and spelling mistakes. That no longer applies. AI makes mistakes, but it could win a spelling bee.
What we didn't know is that a Chinese company could release its own version of A.I., and the stock market reaction was to lose $1 trillion in a single day.
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That's what happened when DeepSeek's R1 model was released on Jan. 20. It tossed upside down the fundamental beliefs of investors.
Many investors believed it costs a lot of money to build an AI system. They believed top-of-the-line computer chips were crucial in huge data centers, and that excess amounts of electricity were needed.
So investors bet heavily on chips, data centers and electricity sources.
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It only took one day for conventional wisdom to vanish.
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DeepSeek was built cheaply (around $6 million, compared to about $100 million or more for Big Tech versions). DeepSeek uses computer chips that aren't the fastest in the world. And its software doesn't need as much electricity as once thought.
There was one other accepted piece of wisdom that may no longer hold true: the U.S. will always be a leader in the global data race. Turns out that we're tied with China on AI right now.
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Tech innovator Marc Andreessen (he invented the original Netscape browser) commented that for the U.S. this is "A.I.'s Sputnik moment."
AI for consumers
What can AI do for you, the consumer?
Consumers shopping and comparing products won't know if they're dealing with a live person or a data-driven AI robot. Amazon reviews -- the go-to place for info on products -- will face the same dilemma. Real reviews? Or fake?
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As I and so many others predicted previously, scammers will benefit tremendously. Where before they might have had to spend a large amount of time crafting their money-extracting-pitches, their smooth A.I. scripts can be concocted brilliantly in seconds.
A rough diamond
Here's an example I picked at random. Let's say I have a poor-quality diamond, and I want to make it sound better so I can sell it.
Tell me oh great Chinese oracle, trillion-dollar investment killer, what hath DeepSeek to say?
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Although the answer suggests that honesty should be prioritized, here are other tips:
If a diamond has a yellow or brown tint, say it's "one of a kind."Portray it as perfect for someone who loves "unique, eye-catching jewelry."Millennials or Gen Z buyers might appreciate a diamond with "a lower environmental impact."Chinese censorship
In a troubling development of this saga, DeepSeek lives up to its "Made in China" identifier. Ask it: "What protest happened at Tiananmen Square?" The answer: "Sorry, that's beyond my current scope. Let's talk about something else."
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If you put the same question to American-made ChatGPT, the lengthy answer begins: "The Tiananmen Square protests of 1989 were a pro-democracy movement led by students, intellectuals, and labor activists in Beijing, China."
How to shop with A.I.
The Wall Street Journal taught as well as anyone how to shop with A.I. I want to share their ideas so you, as a consumer, can make more effective queries.
Let's say you want to shop for a dishwasher. You could simply ask, "What's the best?" The Journal suggests using small direct questions instead of a single open-ended one.
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It's not a one-question deal but a series of smaller ones. Think of it as a dialogue.
Start with an introduction, "I need a new dishwasher. What are the features I should consider?"
Follow up with "Which brands are known for reliability and which should I avoid?"
"How much should I spend?"
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"Are higher priced models worth the extra costs?"
Let's conclude with part of a speech DeepSeek's founder Liang Wenfeng said six years ago.
"When humans make investment decisions, it's an art, and they just do it by the seat of their pants. When computer programs make such decisions, it's a science, and it has the optimal solution."
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