Global Advisors | Quantified Strategy Consulting

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Quote: Yann Lecun

Quote: Yann Lecun

“Most of the infrastructure cost for AI is for inference: serving AI assistants to billions of people.”
— Yann LeCun, VP & Chief AI Scientist at Meta

Yann LeCun made this comment in response to the sharp drop in Nvidia’s share price on January 27, 2024, following the launch of Deepseek R1, a new AI model developed by Deepseek AI. This model was reportedly trained at a fraction of the cost incurred by Hyperscalers like OpenAI, Anthropic, and Google DeepMind, raising questions about whether Nvidia’s dominance in AI compute was at risk.

The market reaction stemmed from speculation that the training costs of cutting-edge AI models—previously seen as a key driver of Nvidia’s GPU demand—could decrease significantly with more efficient methods. However, LeCun pointed out that most AI infrastructure costs come not from training but from inference, the process of running AI models at scale to serve billions of users. This suggests that Nvidia’s long-term demand may remain strong, as inference still relies heavily on high-performance GPUs.

LeCun’s view aligned with analyses from key AI investors and industry leaders. He supported the argument made by Antoine Blondeau , co-founder of Alpha Intelligence Capital, who described Nvidia’s stock drop as “vastly overblown” and “NOT a ‘Sputnik moment’”, referencing the concern that Nvidia’s market position was insecure. Additionally, Jonathan Ross, founder of Groq, shared a video titled “Why $500B isn’t enough for AI,” explaining why AI compute demand remains insatiable despite efficiency gains.

This discussion underscores a critical aspect of AI economics: while training costs may drop with better algorithms and hardware, the sheer scale of inference workloads—powering AI assistants, chatbots, and generative models for billions of users—remains a dominant and growing expense. This supports the case for sustained investment in AI infrastructure, particularly in Nvidia’s GPUs, which continue to be the gold standard for inference at scale.

Quote: Andrew Johnson

Quote: Andrew Johnson

“The men of our race in every age have struggled to tie up the hands of their Governments and keep them within the law; because their own experience of all mankind taught them that rulers could not be relied on to concede those rights which they were not legally bound to respect.” – Andrew Johnson. US President

— Veto of the First Military Reconstruction Act , March 2 1867

The quote reflects his views on the relationship between government authority and individual rights, particularly in the context of post-Civil War America. Johnson, who served as the 17th President of the United States (1865-1869), assumed office after the assassination of Abraham Lincoln and faced the monumental task of reconstructing the nation following the Civil War.

In this statement, Johnson emphasizes the historical struggle of people to limit governmental power and ensure that rulers adhere to the law. He suggests that throughout history, individuals have sought to “tie up the hands of their Governments” to prevent abuses of power and protect their rights. This perspective is rooted in a fundamental belief in the rule of law and the idea that governments must be held accountable to the rights of the governed.

Johnson’s assertion that “rulers could not be relied on to concede those rights which they were not legally bound to respect” highlights a skepticism toward government authority. He implies that without legal constraints, those in power are unlikely to voluntarily respect the rights of individuals. This reflects a broader philosophical view that emphasizes the necessity of legal frameworks to safeguard civil liberties and prevent tyranny.

The context of Johnson’s veto is significant. The First Military Reconstruction Act was part of a series of measures aimed at rebuilding the South and ensuring civil rights for newly freed African Americans. Johnson’s opposition to the act stemmed from his belief in a more lenient approach to Reconstruction, which favored the rights of Southern states over federal intervention. His veto was indicative of his contentious relationship with Congress, particularly with the Radical Republicans who sought to enforce stricter measures for Reconstruction.

Johnson’s quote can be interpreted as a defense of limited government and a warning against the potential for governmental overreach. However, it also reflects his political stance during a critical period in American history, where the struggle for civil rights and the integration of formerly enslaved individuals into society were at the forefront of national discourse.

Overall, this quote serves as a reminder of the ongoing tension between individual rights and governmental authority, a theme that remains relevant in contemporary discussions about civil liberties, the rule of law, and the responsibilities of government to its citizens. Johnson’s emphasis on the need for legal constraints on power resonates with the foundational principles of democracy and the importance of protecting the rights of all individuals against potential abuses by those in authority.

Quote: Gerald Ford

Quote: Gerald Ford

“America’s strength has never rested on arms alone. It is rooted in our mutual commitment of our citizens and leaders in the highest standards of ethics and morality and in the spiritual renewal.” – Gerald Ford, US President

— President Gerald R. Ford’s Remarks in Kansas City Upon Accepting the 1976 Republican Presidential Nomination on August 19, 1976

Ford, who served as the 38th President of the United States from 1974 to 1977, took office during a tumultuous period marked by political scandal, economic challenges, and a national crisis of confidence following the Watergate scandal.

In this statement, Ford emphasizes that America’s strength is not solely derived from its military power or military might (“arms alone”) but is fundamentally rooted in the ethical and moral commitments of its citizens and leaders. He highlights the importance of high standards of ethics and morality, suggesting that the integrity of individuals in positions of power is crucial for the health and stability of the nation. This perspective underscores the belief that effective governance and national strength are built on trust, accountability, and a shared commitment to ethical principles.

Ford’s mention of “spiritual renewal” adds another layer to his message, indicating that the nation’s strength also relies on a sense of purpose, community, and shared values. This call for spiritual renewal can be interpreted as a plea for Americans to reconnect with the ideals that define the nation, such as liberty, justice, and the common good. In the context of the 1970s, a decade marked by social upheaval and disillusionment, Ford’s remarks served as a reminder of the importance of unity and moral clarity in overcoming challenges.

The quote also reflects Ford’s broader vision for America as a nation that values not only its material and military capabilities but also its moral and ethical foundations. By advocating for a commitment to high standards of conduct, Ford sought to inspire citizens to engage in civic responsibility and to hold their leaders accountable.

Overall, this quote resonates with contemporary discussions about the role of ethics in politics, the importance of civic engagement, and the need for a collective commitment to the values that define a democratic society. Ford’s assertion serves as a reminder that true strength lies not just in power or resources but in the integrity and character of the people who make up the nation. His call for mutual commitment to ethics and morality encourages citizens to actively participate in shaping a just and equitable society.

Quote: John Fitzgerald Kennedy

Quote: John Fitzgerald Kennedy

“The rights of every man are diminished when the rights of one man are threatened.” – John Fitzgerald Kennedy, US President

— June 11, 1963 televised address

The quote from John F. Kennedy’s televised address on June 11, 1963, encapsulates a profound understanding of civil rights and social justice. As the 35th President of the United States (1961-1963), Kennedy was a pivotal figure during a time of significant social change, particularly regarding the civil rights movement, which sought to end racial segregation and discrimination against African Americans.

In this statement, Kennedy emphasizes the interconnectedness of individual rights within a society. He asserts that the rights of every person are compromised when any individual’s rights are threatened. This idea reflects a fundamental principle of justice and equality: that the protection of rights is not merely an individual concern but a collective responsibility. When one person’s rights are violated, it creates a ripple effect that undermines the rights and freedoms of all.

Kennedy’s message was particularly relevant in the context of the civil rights movement, which was gaining momentum in the early 1960s. His address came at a time when the nation was grappling with issues of racial inequality, segregation, and violence against civil rights activists. By highlighting the importance of protecting the rights of all individuals, Kennedy called for a moral imperative to stand against injustice and discrimination, regardless of race or background.

This quote also serves as a reminder of the broader implications of social justice. It suggests that a society cannot claim to be truly free or just if it allows any group to be marginalized or oppressed. Kennedy’s words encourage citizens to recognize their shared humanity and the importance of solidarity in the fight for equality and justice.

Kennedy’s commitment to civil rights was further demonstrated in his administration’s support for legislation aimed at ending segregation and ensuring voting rights. His advocacy for civil rights laid the groundwork for the Civil Rights Act of 1964, which would be enacted after his assassination.

Overall, this quote resonates with contemporary discussions about human rights, social justice, and the importance of collective action in addressing inequality. Kennedy’s assertion serves as a powerful reminder that the fight for justice is a shared responsibility, and that the protection of individual rights is essential for the well-being of society as a whole.

Infographic: Four critical DeepSeek enablers

Infographic: Four critical DeepSeek enablers

The DeepSeek team has introduced several high-impact changes to Large Language Model (LLM) architecture to enhance performance and efficiency:

Multi-Head Latent Attention (MLA): This mechanism enables the model to process multiple facets of input data simultaneously, improving both efficiency and performance. MLA reduces the memory required to compute a transformer’s attention by a factor of 7.5x to 20x, a breakthrough that makes large-scale AI applications more feasible. Unlike Flash Attention, which improves data organization in memory, MLA compresses the KV cache into a lower-dimensional space, significantly reducing memory usage—down to 5% to 13% of traditional attention mechanisms—while maintaining performance.
Mixture-of-Experts (MoE) Architecture: DeepSeek employs an MoE system that activates only a subset of its total parameters during any given task. For instance, in DeepSeek-V3, only 37 billion out of 671 billion parameters are active at a time, significantly reducing computational costs. This approach enhances efficiency and aligns with the trend of making AI models more compute-light, allowing freed-up GPU resources to be allocated to multi-modal processing, spatial intelligence, or genomic analysis. MoE models, as also leveraged by Mistral and other leading AI labs, allow for scalability while keeping inference costs manageable.
FP8 Floating Point Precision: To enhance computational efficiency, DeepSeek-V3 utilizes FP8 floating point precision during training, which helps in reducing memory usage and accelerating computation. This follows a broader trend in AI to optimize training methodologies, potentially influencing the approach taken by U.S.-based LLM providers. Given China’s restricted access to high-end GPUs due to U.S. export controls, optimizations like FP8 and MLA are critical in overcoming hardware limitations.
DeepSeek-R1 and Test-Time Compute Capabilities: DeepSeek-R1 is a model that leverages reinforcement learning (RL) to enable test-time compute, significantly improving reasoning capabilities. The model was trained using an innovative RL strategy, incorporating fine-tuned Chain of Thought (CoT) data and supervised fine-tuning (SFT) data across multiple domains. Notably, DeepSeek demonstrated that any sufficiently powerful LLM can be transformed into a high-performance reasoning model using only 800k curated training samples. This technique allows for rapid adaptation of smaller models, such as Qwen and LLaMa-70b, into competitive reasoners.
Distillation to Smaller Models: The team has developed distilled versions of their models, such as DeepSeek-R1-Distill, which are fine-tuned on synthetic data generated by larger models. These distilled models contain fewer parameters, making them more efficient while retaining significant capabilities. DeepSeek’s ability to achieve comparable reasoning performance at a fraction of the cost of OpenAI’s models (5% of the cost, according to Pelliccione) has disrupted the AI landscape.

The Impact of Open-Source Models:

DeepSeek’s success highlights a fundamental shift in AI development. Traditionally, leading-edge models have been closed-source and controlled by Western AI firms like OpenAI, Google, and Anthropic. However, DeepSeek’s approach, leveraging open-source components while innovating on training efficiency, has disrupted this dynamic. Pelliccione notes that DeepSeek now offers similar performance to OpenAI at just 5% of the cost, making high-quality AI more accessible. This shift pressures proprietary AI companies to rethink their business models and embrace greater openness.

Challenges and Innovations in the Chinese AI Ecosystem:

China’s AI sector faces major constraints, particularly in access to high-performance GPUs due to U.S. export restrictions. Yet, Chinese companies like DeepSeek have turned these challenges into strengths through aggressive efficiency improvements. MLA and FP8 precision optimizations exemplify how innovation can offset hardware limitations. Furthermore, Chinese AI firms, historically focused on scaling existing tech, are now contributing to fundamental advancements in AI research, signaling a shift towards deeper innovation.

The Future of AI Control and Adaptation:

DeepSeek-R1’s approach to training AI reasoners poses a challenge to traditional AI control mechanisms. Since reasoning capabilities can now be transferred to any capable model with fewer than a million curated samples, AI governance must extend beyond compute resources and focus on securing datasets, training methodologies, and deployment platforms. OpenAI has previously obscured Chain of Thought traces to prevent leakage, but DeepSeek’s open-weight release and published RL techniques have made such restrictions ineffective.

Broader Industry Context:

DeepSeek benefits from Western open-source AI developments, particularly Meta’s LLama model disclosures, which provided a foundation for its advancements. However, DeepSeek’s success also demonstrates that China is shifting from scaling existing technology to innovating at the frontier.
Open-source models like DeepSeek will see widespread adoption for enterprise and research applications, though Western businesses are unlikely to build their consumer apps on a Chinese API.
The AI innovation cycle is exceptionally fast, with breakthroughs assessed daily or weekly. DeepSeek’s advances are part of a rapidly evolving competitive landscape dominated by U.S. big tech players like OpenAI, Google, Microsoft, and Meta, who continue to push for productization and revenue generation. Meanwhile, Chinese AI firms, despite hardware and data limitations, are innovating at an accelerated pace and have proven capable of challenging OpenAI’s dominance.

These innovations collectively contribute to more efficient and effective LLMs, balancing performance with resource utilization while shaping the future of AI model development.

Sources: Global Advisors, Jack Clark – Anthropic, Antoine Blondeau, Alberto Pelliccione, infoq.com, medium.com, en.wikipedia.org, arxiv.org

Quote: Dwight D. Eisenhower

Quote: Dwight D. Eisenhower

“The general limits of your freedom are merely these: that you do not trespass upon the equal rights of others.” – Dwight D. Eisenhower, US President

— April 22, 1954 address to the National Society of Daughters of the American Revolution

The quote from Dwight D. Eisenhower’s address to the National Society of Daughters of the American Revolution on April 22, 1954, succinctly captures a fundamental principle of democratic governance and individual liberty. Eisenhower, who served as the 34th President of the United States from 1953 to 1961, was known for his emphasis on unity, civic responsibility, and the importance of balancing individual freedoms with the rights of others.

In this statement, Eisenhower articulates a clear boundary for personal freedom: it is limited by the equal rights of others. This idea reflects the core tenet of democratic societies that individual liberties must coexist with the rights and freedoms of fellow citizens. Eisenhower’s assertion underscores the notion that true freedom is not absolute; rather, it is contingent upon mutual respect and consideration for the rights of others.

This perspective is particularly relevant in discussions about civil rights, social justice, and the responsibilities that accompany freedom. Eisenhower’s emphasis on “trespassing upon the equal rights of others” highlights the importance of recognizing that one’s actions and freedoms should not infringe upon the rights and dignity of others. This principle is foundational to the rule of law and the social contract that underpins democratic societies.

Eisenhower’s message also resonates with the historical context of the 1950s, a period marked by significant social change, including the civil rights movement. His call for respect for the rights of others aligns with the broader struggle for equality and justice during this time, as marginalized groups sought to assert their rights and challenge systemic discrimination.

Overall, this quote serves as a reminder of the delicate balance between individual freedom and social responsibility. Eisenhower’s words encourage citizens to reflect on their actions and the impact they have on the rights of others, promoting a culture of respect, empathy, and civic engagement. By advocating for a framework of freedom that is mindful of the rights of all, Eisenhower reinforces the idea that a healthy democracy relies on the active participation of informed and responsible citizens who uphold the principles of equality and justice.

Quote: Dwight D. Eisenhower

Quote: Dwight D. Eisenhower

“A people that values its privileges above its principles soon loses both.” – Dwight D. Eisenhower, US President

— January 20, 1953 inaugural address

The quote from Dwight D. Eisenhower’s inaugural address on January 20, 1953, encapsulates a profound warning about the relationship between values, principles, and the health of a democratic society. Eisenhower, the 34th President of the United States (1953-1961), was a five-star general during World War II and played a pivotal role in the Allied victory in Europe before transitioning to a political career.

In this statement, Eisenhower emphasizes the importance of principles over privileges. He suggests that when a society prioritizes its privileges—such as wealth, power, or status—over its foundational principles—such as justice, equality, and integrity—it risks losing both. This idea reflects a deep understanding of the moral and ethical underpinnings necessary for a healthy democracy.

Eisenhower’s warning can be interpreted as a critique of self-interest and materialism, which can lead to a neglect of civic responsibility and ethical governance. He implies that a focus on individual or group privileges can erode the collective values that bind a society together, ultimately undermining the very foundations of democracy. In this context, principles serve as the guiding framework for a just society, while privileges can become a source of division and conflict if not balanced by a commitment to the common good.

The quote also resonates with the political climate of the early 1950s, a time marked by the Cold War, civil rights movements, and significant social change in the United States. Eisenhower’s presidency would confront issues of national security, economic prosperity, and social justice, all of which required a careful balance between individual rights and collective responsibilities.

Eisenhower’s message remains relevant today, as societies continue to grapple with the tension between personal interests and the greater good. His call to value principles over privileges serves as a reminder of the importance of ethical leadership, civic engagement, and the need for citizens to prioritize the common welfare in order to sustain democracy and social cohesion. By advocating for a principled approach to governance and citizenship, Eisenhower encourages individuals and leaders alike to reflect on their values and the impact of their choices on society as a whole.

Quote: Jack Clark

Quote: Jack Clark

“The most surprising part of DeepSeek-R1 is that it only takes ~800k samples of ‘good’ RL reasoning to convert other models into RL-reasoners. Now that DeepSeek-R1 is available people will be able to refine samples out of it to convert any other model into an RL reasoner.” – Jack Clark, Anthropic

Jack Clark, Co-founder of Anthropic, co-chair of the AI Index at Stanford University, co-chair of OECD working group on AI & Compute, shed light on the significance of DeepSeek-R1, a revolutionary AI reasoning model developed by China’s DeepSeek team. In an article posted in his newsletter on the 27th January 2025, Clark highlighted that it only takes approximately 800k samples of “good” RL (Reinforcement Learning) reasoning to convert other models into RL-reasoners.

The Power of Fine-Tuning

DeepSeek-R1 is not just a powerful AI model; it also provides a framework for fine-tuning existing models to enhance their reasoning capabilities. By leveraging the 800k samples curated with DeepSeek-R1, researchers can refine any other model into an RL reasoner. This approach has been demonstrated by fine-tuning open-source models like Qwen and Llama using the same dataset.

Implications for AI Policy

The release of DeepSeek-R1 has significant implications for AI policy and control. As Clark notes, if you need fewer than a million samples to convert any model into a “thinker,” it becomes much harder to control AI systems. This is because the valuable data, including chains of thought from reasoning models, can be leaked or shared openly.

A New Era in AI Development

The availability of DeepSeek-R1 and its associated techniques has created a new era in AI development. With an open weight model floating around the internet, researchers can now bootstrap any other sufficiently powerful base model into being an AI reasoner. This has the potential to accelerate AI progress worldwide.

Key Takeaways:

Fine-tuning is key : DeepSeek-R1 demonstrates that fine-tuning existing models with a small amount of data (800k samples) can significantly enhance their reasoning capabilities.
Open-source and accessible : The model and its techniques are now available for anyone to use, making it easier for researchers to develop powerful AI reasoners.
Implications for control : The release of DeepSeek-R1 highlights the challenges of controlling AI systems, as valuable data can be leaked or shared openly.

Conclusion

DeepSeek-R1 has marked a significant milestone in AI development, showcasing the power of fine-tuning and open-source collaboration. As researchers continue to build upon this work, we can expect to see even more advanced AI models emerge, with far-reaching implications for various industries and applications.

Quote: Harry Truman

Quote: Harry Truman

“A man who uses the weapon of the “big lie” is not a good man. He should be rejected by all good citizens, regardless of party. Partisan feeling often runs high in election campaigns. That is understandable. But it should not lead us to permit the use of this dangerous Communist technique in American politics.” – Harry Truman, US President

— Address Before the National Conference on Citizenship on September 17th, 1952

The quote from Harry S. Truman’s address before the National Conference on Citizenship on September 17, 1952, reflects his strong condemnation of dishonesty and manipulation in political discourse. Truman, who served as the 33rd President of the United States from 1945 to 1953, was known for his straightforwardness and commitment to integrity in governance.

In this statement, Truman specifically refers to the “big lie,” a term that suggests the deliberate use of falsehoods on a grand scale to mislead the public. He asserts that anyone who resorts to such tactics is not a “good man” and should be rejected by all citizens, regardless of their political affiliation. This call for integrity transcends partisan lines, emphasizing that ethical behavior should be a universal expectation for all public figures.

Truman’s reference to the “dangerous Communist technique” highlights the context of the Cold War era, during which anti-communist sentiment was pervasive in American society. He was concerned that the tactics used by totalitarian regimes, including the spread of propaganda and misinformation, could infiltrate American politics and undermine democratic values. By associating the “big lie” with communism, Truman warns against the erosion of truth in political discourse, which he viewed as a threat to democracy itself.

The quote also acknowledges the heightened emotions that often accompany election campaigns, recognizing that partisan feelings can lead to divisive rhetoric. However, Truman insists that such feelings should not justify the acceptance of dishonest tactics. His emphasis on rejecting the “big lie” serves as a call to uphold the principles of honesty and accountability in political life.

This message remains relevant in contemporary political discourse, where misinformation and divisive rhetoric can significantly impact public opinion and democratic processes. Truman’s insistence on the importance of truth-telling and ethical conduct in politics serves as a reminder of the responsibility that citizens and leaders alike have to foster a political culture grounded in integrity and respect for the truth. His words encourage vigilance against the manipulation of information and the necessity of maintaining high ethical standards in public service.

Quote: Marc Andreessen

Quote: Marc Andreessen

“DeepSeek-R1 is AI’s Sputnik moment.” – Marc Andreessen, Andreesen Horowitz

In a 27th January 2025 X statement that sent shockwaves through the tech community, venture capitalist Marc Andreessen declared that DeepSeek’s R1 AI reasoning model is “AI’s Sputnik moment.” This analogy draws parallels between China’s breakthrough in artificial intelligence and the Soviet Union’s historic achievement of launching the first satellite into orbit in 1957.

The Rise of DeepSeek-R1

DeepSeek, a Chinese AI lab, has made headlines with its open-source release of R1, a revolutionary AI reasoning model that is not only more cost-efficient but also poses a significant threat to the dominance of Western tech giants. The model’s ability to reduce compute requirements by half without sacrificing accuracy has sent shockwaves through the industry.

A New Era in AI

The release of DeepSeek-R1 marks a turning point in the AI arms race, as it challenges the long-held assumption that only a select few companies can compete in this space. By making its research open-source, DeepSeek is empowering anyone to build their own version of R1 and tailor it to their needs.

Implications for Megacap Stocks

The success of DeepSeek-R1 has significant implications for megacap stocks like Microsoft, Alphabet, and Amazon, which have long relied on proprietary AI models to maintain their technological advantage. The pen-source nature of R1 threatens to wipe out this advantage, potentially disrupting the business models of these tech giants.

Nvidia’s Nightmare

The news comes as a blow to Nvidia CEO Jensen Huang, who is ramping up production of his Blackwell microchip, a more advanced version of his industry-leading Hopper series H100s. The chip controls 90% of the AI semiconductor market, but R1’s ability to reduce compute requirements may render these chips less essential.

A New Era of Innovation

Perplexity AI founder Aravind Srinivas praised DeepSeek’s team for catching up to the West by employing clever solutions, including switching from binary encoding to floating point 8. This innovation not only reduces costs but also demonstrates that China is no longer just a copycat, but a leader in AI innovation.

Quote: Marc Benioff

Quote: Marc Benioff

“AI agents. That’s beginning of an unlimited workforce.” – Marc Benioff

Marc Benioff is discussing the potential impact of AI agents on the workforce during a conversation between Marc Benioff, the CEO of Salesforce, and Bloomberg at the World Economic Forum (WEF) in Davos on the 24th January 2025. He mentions that with AI agents, companies can scale their sales and service operations without having to hire more employees. This is illustrated by an example of a customer, Wiley, which was able to avoid hiring gig workers during its “back to school” season due to the use of Salesforce’s agent force technology.

Benioff emphasizes that this is just the beginning of an unlimited workforce, implying that AI agents will continue to revolutionize the way companies operate and potentially lead to significant changes in the job market. He also highlights the benefits of using AI agents, such as increased productivity and the ability to redeploy human resources to other areas of the business.

The quote suggests that Benioff is optimistic about the potential of AI agents to transform businesses and create new opportunities for growth and innovation. However, it also raises questions about the impact on employment and the future of work in general.

Quote: Jeffrey Emanuel

Quote: Jeffrey Emanuel

“With R1, DeepSeek essentially cracked one of the holy grails of AI: getting models to reason step-by-step without relying on massive supervised datasets.” – Jeffrey Emanuel

Jeffrey Emanuel’s statement (“The Short Case for Nvidia Stock” – 25th January 2025) highlights a groundbreaking achievement in AI with DeepSeek’s R1 model, which has made significant strides in enabling step-by-step reasoning without the traditional reliance on vast supervised datasets:

Innovation Through Reinforcement Learning (RL):
- The R1 model employs reinforcement learning, a method where models learn through trial and error with feedback. This approach reduces the dependency on large labeled datasets typically required for training, making it more efficient and accessible.
Advanced Reasoning Capabilities:
- R1 excels in tasks requiring logical inference and mathematical problem-solving. Its ability to demonstrate step-by-step reasoning is crucial for complex decision-making processes, applicable across various industries from autonomous systems to intricate problem-solving tasks.
Efficiency and Accessibility:
- By utilizing RL and knowledge distillation techniques, R1 efficiently transfers learning to smaller models. This democratizes AI technology, allowing global researchers and developers to innovate without proprietary barriers, thus expanding the reach of advanced AI solutions.
Impact on Data-Scarce Industries:
- The model’s capability to function with limited data is particularly beneficial in sectors like medicine and finance, where labeled data is scarce due to privacy concerns or high costs. This opens doors for more ethical and feasible AI applications in these fields.
Competitive Landscape and Innovation:
- R1 positions itself as a competitor to models like OpenAI’s o1, signaling a shift towards accessible AI technology. This fosters competition and encourages other companies to innovate similarly, driving advancements across the AI landscape.

In essence, DeepSeek’s R1 model represents a significant leap in AI efficiency and accessibility, offering profound implications for various industries by reducing data dependency and enhancing reasoning capabilities.

Quote: Harry Truman

Quote: Harry Truman

“But we expect our citizens to put aside those old nationalistic or racial feuds. They have no place here. We welcome you not to a narrow nationalism but to a great community based on universal ideals. Those universal ideals are the brotherhood of man and the welfare not only of our own country but the whole world besides.” – Harry Truman, US President

— Address Before the National Conference on Citizenship on September 17th, 1952

Harry S. Truman, the 33rd President of the United States (1945-1953), is known for his decisive leadership during the final stages of World War II and the early years of the Cold War. His presidency was marked by significant events such as the implementation of the Marshall Plan, the establishment of NATO, and the recognition of Israel. Truman’s commitment to civil rights and international cooperation also shaped his legacy.

The quote comes from Truman’s address before the National Conference on Citizenship on September 17, 1952. In this statement, Truman calls for a collective effort among citizens to transcend old nationalistic and racial divisions, emphasizing the importance of unity and shared ideals. His message reflects the post-World War II context, where the world was grappling with the consequences of conflict, colonialism, and the emerging tensions of the Cold War.

Truman’s assertion that “those old nationalistic or racial feuds” have no place in the community he envisions speaks to his belief in the necessity of inclusivity and cooperation among diverse groups. He advocates for a “great community based on universal ideals,” which suggests a vision of society that prioritizes common humanity over divisive identities. The “brotherhood of man” he refers to underscores the idea that all people share fundamental rights and responsibilities, regardless of their national or racial backgrounds.

Moreover, Truman’s emphasis on the “welfare not only of our own country but the whole world besides” reflects a commitment to global citizenship and the interconnectedness of nations. This perspective aligns with the post-war vision of international cooperation, where nations would work together to address common challenges such as poverty, conflict, and human rights.

Truman’s call for unity and universal ideals resonates with contemporary discussions about diversity, inclusion, and global responsibility. His message serves as a reminder of the importance of fostering understanding and cooperation among different communities, particularly in an increasingly interconnected world. By advocating for a collective commitment to the welfare of all humanity, Truman’s words encourage citizens to embrace their roles as active participants in building a more just and equitable society.

Quote: Andrej Karpathy

Quote: Andrej Karpathy

“I think 2025-2035 is the decade of agents…… you’ll spin up organizations of Operators for long-running tasks of your choice (eg running a whole company).” – Andrej Karpathy, renowned AI Researcher & Leader

The concept of agents, as described by Andrej Karpathy on X on the 23rd January 2025, is a revolutionary idea that has been gaining traction in the field of artificial intelligence (AI). An agent refers to an AI-enabled software system that can perform tasks autonomously, making decisions and taking actions on its own. This technology has the potential to transform various aspects of our lives, from personal assistance to complex organizational management.

The Digital World: A Precedent for Agent-Based Automation

Karpathy draws an analogy between digital agents and humanoid robots in the physical world. Just as a humanoid robot can perform tasks autonomously using its sensors and actuators, a digital agent can interact with its environment through interfaces such as keyboards, mice, or even voice commands. This gradual shift towards autonomy will lead to a mixed-world scenario where humans serve as high-level supervisors, monitoring and guiding low-level automation.

The Role of OpenAI’s Operator

OpenAI’s Operator project is a pioneering effort in developing digital agents that can perform complex tasks. By integrating multimodal interfaces (images, video, audio) with large language models (LLMs), Operator has demonstrated the potential for agents to assist humans in various domains, such as ordering food or checking hotel information.

Challenges and Opportunities

However, Karpathy emphasizes that significant challenges remain before agents can become a reality. These include:

Multimodal integration: Seamlessly integrating multiple interfaces (e.g., images, video, audio) with LLMs to enable more comprehensive understanding of tasks.
Long task horizons: Developing agents capable of handling complex, long-running tasks that require sustained attention and decision-making.
Scalability and reliability: Ensuring that agents can operate reliably and efficiently in various environments and scenarios.

Despite these challenges, Karpathy believes that the decade of 2025-2035 will be marked by significant advancements in agent technology. He envisions a future where humans can spin up organizations of operators to manage complex tasks, such as running an entire company. This would enable CEOs to focus on high-level strategy and oversight, while agents handle day-to-day operations.

Implications and Future Directions

The emergence of agents has far-reaching implications for various industries, including:

Business: Agents could revolutionize organizational management, enabling companies to operate more efficiently and effectively.
Healthcare: Agents could assist in patient care, freeing up medical professionals to focus on high-level decision-making.
Education: Agents could personalize learning experiences, adapting to individual students’ needs and abilities.

As Karpathy notes, the market size and opportunity for agent-based automation are substantial, particularly in the physical world. However, the digital world is likely to see faster adoption due to the relative ease of flipping bits compared to moving atoms.

In conclusion, the concept of agents has the potential to transform various aspects of our lives, from personal assistance to complex organizational management. While significant challenges remain, Karpathy’s vision for a future where humans and agents collaborate to achieve remarkable outcomes is an exciting prospect that warrants continued research and development.
Andrej Karpathy is a renowned AI Researcher & Leader, former Director of AI at Tesla, Co-Founder of OpenAI, and Instructor of Stanford’s CS231n Course

Quote: T.S. Elliot

Quote: T.S. Elliot

“This is the way the world ends, not with a bang but a whimper.” – From the poem “The Hollow Men” – T.S. Elliot

“The Hollow Men” is a poem that explores themes of despair, disillusionment, and the search for meaning in a fragmented world. The poem is divided into five sections and employs a variety of literary allusions, imagery, and symbols. It depicts a sense of emptiness and spiritual barrenness, reflecting the anxieties of the post-World War I era. The “hollow men” are portrayed as individuals who lack substance and purpose, caught in a state of paralysis and unable to act decisively.

The quote “This is the way the world ends, not with a bang but a whimper” appears in the final section of the poem and serves as a powerful conclusion to its themes. It suggests that the end of the world—or the end of an era—may not come with dramatic events or cataclysmic violence (the “bang”) but rather through a quiet, gradual decline (the “whimper”). This reflects a sense of resignation and futility, emphasizing the idea that the greatest tragedies may occur not through grand gestures but through apathy and inaction.

In the context of the poem, this line encapsulates the existential despair of the hollow men, who are unable to find meaning or purpose in their lives. It speaks to the broader human condition, suggesting that the loss of hope and vitality can lead to a silent, unnoticed demise. The imagery evokes a world that has lost its way, where individuals are disconnected from each other and from their own sense of agency.

Overall, the quote serves as a poignant reminder of the fragility of existence and the importance of confronting the deeper issues of identity, purpose, and connection in a world that often feels empty and devoid of meaning.

Quote: Theodore Roosevelt

Quote: Theodore Roosevelt

“The President is merely the most important among a large number of public servants. He should be supported or opposed exactly to the degree which is warranted by his good conduct or bad conduct, his efficiency or inefficiency in rendering loyal, able, and disinterested service to the Nation as a whole. Therefore it is absolutely necessary that there should be full liberty to tell the truth about his acts, and this means that it is exactly necessary to blame him when he does wrong as to praise him when he does right. Any other attitude in an American citizen is both base and servile. To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public. Nothing but the truth should be spoken about him or any one else. But it is even more important to tell the truth, pleasant or unpleasant, about him than about any one else.” – Theodore Roosevelt, US President

— May 7, 1918 editorial in the Kansas City Star

Theodore Roosevelt, the 26th President of the United States (1901-1909), is known for his progressive policies, vigorous leadership style, and commitment to reform. He championed issues such as trust-busting, conservation, and social justice, and he was a key figure in expanding the role of the federal government in regulating the economy and protecting the environment.

The quote from an editorial Roosevelt wrote for the Kansas City Star on May 7, 1918. In this statement, Roosevelt articulates a fundamental principle of democratic governance: the necessity of accountability for public officials, particularly the President. He emphasizes that the President is not above scrutiny; rather, he is “merely the most important among a large number of public servants.” This perspective underscores the idea that all public officials, including the highest officeholder, must be held to the same standards of conduct and performance.

Roosevelt’s assertion that citizens should support or oppose the President based on his “good conduct or bad conduct” reflects his belief in the importance of civic engagement and responsibility. He argues that it is essential for citizens to have the freedom to express their opinions about the President’s actions, whether those opinions are critical or supportive. This freedom of expression is a cornerstone of democracy, allowing for open discourse and debate about the actions of government leaders.

The phrase “unpatriotic and servile” captures Roosevelt’s disdain for blind loyalty to authority figures. He warns against the dangers of a culture that discourages criticism of the President, suggesting that such an attitude undermines the very principles of democracy and accountability. By labeling the refusal to criticize the President as “morally treasonable,” Roosevelt emphasizes the ethical obligation of citizens to speak the truth about their leaders, regardless of the political climate.

Quote: Rutherford B. Hayes

Quote: Rutherford B. Hayes

“Nothing brings out the lower traits of human nature like office-seeking. Men of good character and impulses are betrayed by it into all sorts of meanness.” – Rutherford B. Hayes, US President

— From the Diary and Letters of Rutherford B. Hayes, August 9, 1878

Rutherford B. Hayes, the 19th President of the United States (1877-1881), is often remembered for his efforts to reform the civil service and his commitment to ending the post-Civil War era of Reconstruction. Before his presidency, Hayes had a distinguished career as a lawyer and a Union general during the Civil War. His administration is noted for its attempts to address corruption in government and to promote integrity in public service.

The quote from Hayes’s diary on August 9, 1878, reflects his critical perspective on the nature of political ambition and the pursuit of office. In this statement, Hayes suggests that the quest for political power can corrupt individuals, even those with good character and noble intentions. He implies that the competitive and often ruthless nature of office-seeking can lead people to compromise their values and engage in unethical behavior.

Hayes’s observation speaks to a broader concern about the impact of political culture on human behavior. He recognized that the desire for power can elicit “the lower traits of human nature,” such as greed, deceit, and manipulation. This insight is particularly relevant in the context of the Gilded Age, a period marked by significant political corruption, patronage, and the influence of money in politics.

By highlighting the potential for moral degradation in the pursuit of office, Hayes advocates for a political culture that prioritizes integrity and ethical conduct. His commitment to civil service reform was a response to the very issues he describes in this quote. He believed that a merit-based system, rather than one based on patronage and favoritism, could help mitigate the corrupting influences of office-seeking.

Quote: Abraham Lincoln

Quote: Abraham Lincoln

“Let every American, every lover of liberty, every well wisher to his posterity, swear by the blood of the Revolution, never to violate in the least particular, the laws of the country; and never to tolerate their violation by others.” – Abraham Lincoln. US President

— Address before the Young Men’s Lyceum of Springfield — January 27, 1838

Abraham Lincoln, the 16th President of the United States (1861-1865), is renowned for his leadership during the Civil War and his efforts to abolish slavery through the Emancipation Proclamation. Lincoln’s speeches and writings often reflect his deep commitment to the principles of democracy, liberty, and the rule of law.

The quote comes from Lincoln’s address before the Young Men’s Lyceum of Springfield on January 27, 1838. In this speech, Lincoln emphasizes the importance of upholding the laws of the nation as a fundamental duty of every citizen. His call to “swear by the blood of the Revolution” invokes the sacrifices made by the Founding Fathers and the patriots who fought for American independence, underscoring the gravity of the commitment he is asking of his audience.

Lincoln’s assertion that Americans should never violate the laws of the country, nor tolerate their violation by others, reflects his belief in the necessity of a lawful society. He recognized that the strength of the nation relies on the adherence to laws and the principles of justice. This sentiment is particularly poignant given the context of his time, as the nation was grappling with issues of sectionalism, lawlessness, and the moral crisis surrounding slavery.

Moreover, Lincoln’s emphasis on the responsibility of citizens to actively uphold the law speaks to the broader theme of civic duty. He believed that the preservation of liberty and democracy required active participation and vigilance from the populace. By urging his audience to take an oath to uphold the law, Lincoln was advocating for a collective commitment to the ideals of justice and order that underpin a free society.

Quote: James Polk

Quote: James Polk

“Numerous emigrants, of every lineage and language, attracted by the civil and religious freedom we enjoy and by our happy condition, annually crowd to our shores, and transfer their heart, not less than their allegiance, to the country whose dominion belongs alone to the people.” – James Polk, US President

James K. Polk, the 11th President of the United States (1845-1849), is often remembered for his expansionist policies and significant role in shaping the territorial boundaries of the United States during the mid-19th century. A member of the Democratic Party, Polk was a strong advocate for Manifest Destiny, the belief that the U.S. was destined to expand across the North American continent.

The quote reflects Polk’s views on immigration and the ideals of American democracy. In this statement, he highlights the appeal of the United States as a land of opportunity, where individuals from diverse backgrounds are drawn to the nation by its promise of civil and religious freedoms. Polk emphasizes that these emigrants not only bring their physical presence but also their loyalty and commitment to the values of the United States.

This perspective is significant in the context of the mid-19th century, a time when the U.S. was experiencing a surge in immigration, particularly from Europe. Polk’s acknowledgment of the contributions of immigrants underscores the idea that the strength of the nation lies in its diversity and the collective allegiance of its people to democratic principles.

Moreover, the phrase “whose dominion belongs alone to the people” reflects the democratic ethos that was central to Polk’s vision of America. It suggests that the government derives its power from the consent of the governed, a foundational principle of American democracy.

Polk’s presidency was marked by significant territorial expansion, including the annexation of Texas and the acquisition of Oregon and California, which further shaped the nation’s identity and its role on the global stage. His quote serves as a reminder of the ideals of freedom and opportunity that have historically attracted immigrants to the United States, contributing to its growth and diversity.

Quote: John Adams

Quote: John Adams

“There is danger from all men. The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty.” – John Adams

John Adams, one of the Founding Fathers of the United States, served as the second President from 1797 to 1801 and was a key figure in the American Revolution. He was a strong advocate for independence and played a crucial role in drafting the Declaration of Independence. Adams was also a prominent lawyer and a leading voice for the principles of republicanism and the rule of law.

The quote reflects Adams’s deep concern about the potential for tyranny and the abuse of power within a government. Written in his diary in the spring of 1772, this statement underscores his belief that a free government must be vigilant against the concentration of power in the hands of any individual or group. Adams recognized that power can corrupt and that those in authority must be held accountable to prevent the infringement of individual liberties.

This sentiment is foundational to the principles of checks and balances that were later enshrined in the U.S. Constitution. Adams’s cautionary stance emphasizes the importance of skepticism towards authority and the necessity of safeguarding public liberty against potential threats, whether they arise from government officials or other sources. His insights remain relevant in contemporary discussions about governance, civil liberties, and the balance of power in democratic societies.

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