China’s March from Imitation to Innovation: The Case of DeepSeek

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cato.org

James A. Dorn
James A. Dorn

When Chinese AI firm DeepSeek released its innovative R1 model in late January—an open-source model that performs strongly with models developed at much higher cost by leading tech firms—the AI world was taken by surprise. 
US venture capitalist Marc Andreessen called R1 “one of the most amazing and impressive breakthroughs I’ve ever seen.” It is built on DeepSeek’s V3 model, released in 2024, using lower-cost chips and optimized to run predictive large language models (LLMs) with reasoning capabilities. R1 roiled tech stocks on January 27, with superstar chip maker Nvidia’s market value falling by nearly $600 billion on the expectation that demand for its top-rated chips would fall in light of DeepSeek’s ability to economize on Nvidia chips while performing at high levels.
The Rise of DeepSeek
The emergence of DeepSeek as an important player in the tech sector is due to the efforts of 40-year-old Chinese billionaire Liang Wenfeng, who used capital from his quantitative hedge fund, High-Flyer, to launch DeepSeek in May 2023. As a nonstate/​private enterprise, DeepSeek made progress on its own by hiring talent from some of China’s leading universities and paying highly competitive salaries. The firm was set up as a research operation to advance AI models and eventually to build models to match human learning processes (known as Artificial General Intelligence or AGI). 
Early work led to LLMs V1 and V2, but the real breakthrough that brought worldwide attention to DeekSeek was the release of V3 in December 2024 and R1 a month later. The training costs for V3 were less than $6 million, far below the costs of training LLMs at major AI firms. AI models consist of algorithms and the data used to train them. Training consists of “the process of feeding an AI model curated data sets to evolve the accuracy of its output” (Chen 2023).   » Read More
https://www.cato.org/blog/chinas-march-imitation-innovation-case-deepseek

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Introduction

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Registration

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Our Company Partners and Sponsors

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Online Advertisements

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Responses to Email Inquiries

When Visitors or Subscribers send email inquiries to our company, the return email address is used to answer the email inquiry we receive.

Voluntary Customer Surveys

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Promotions

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Special Cases

It is our company’s policy to use or share the personal information about Visitors or Subscribers in ways described herein without additional notice or means to opt out or otherwise prohibit such unrelated uses.

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Browser Level Information

TheFoliPrime, Inc. web servers may automatically collect information about a site user’s IP address, browser type and the URL that you just came from (whether this URL is on the website or not) and which URL you next go to (whether this URL is on the website or not) by reading this information from the user’s browser (information provided by every user’s browser). This information is collected in a database and used – in an aggregated, anonymous manner – in our internal analysis of traffic patterns within our website. This information is automatically logged by most websites. The FoliPrime, Inc. may also use a third party to collect information, including through the use of web beacons.

Notice of Compliance to California Residents: Your California Privacy Rights Under the California Online Privacy Protection Act and the California Business and Professions Code

This privacy policy identifies the categories of personally identifiable information that our company collects through our web site or online service, about individual consumers who use or visit our company’s commercial web site or online service and the categories of third-party persons or entities with whom our company may share that personally identifiable information.

Our company does not maintain a process for an individual consumer who uses or visits our commercial web site or online service to review and request changes to any of his or her personally identifiable information that is collected through our web site or online service.

See the section below entitled “Revisions to this Policy” for a description of the process by which our company notifies consumers who use or visit our commercial web site or online service of material changes to our company’s privacy policy for this web site or online service.

The effective date of this privacy policy is listed at the end of this privacy policy under the heading, “Last updated.”

For the purposes of this policy and California compliance the following definitions apply:

Depending on the visitor’s activity, in our commercial web site or online service, the following “personally identifiable information” may be collected, in addition to information set forth in other sections of this document.

The term “personally identifiable information” means individually identifiable information about an individual consumer collected online by our company from an individual and maintained by our company in an accessible form, and may include any of the following:

  1. A first and last name.
  2. A home or other physical address, including street name and name of a city or town.
  3. An e-mail address.
  4. A telephone number.
  5. A social security number.
  6. Any other identifier that permits the physical or online contacting of a specific individual.
  7. Information concerning a user that the web site or online service collects online, from the user, and maintains in personally identifiable form, in combination with an identifier described within this privacy policy.

Under California Law SB 27, California residents have the right to receive, once a year, information about third parties with whom we have shared information about you or your family for their marketing purposes during the previous calendar year, and a description of the categories of personal information shared. To make such a request, please send an email to contact@foliprime-product.com and please include the phrase “California Privacy Request” in the subject line, the domain name of the web site you are inquiring about, along with your name, address and email address. We will respond to you within thirty days of receiving such a request.

“Cookies” and How Our Company Uses Them

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We, along with and third-party vendors, including Google, use first-party cookies (such as the Google Analytics cookie) and third-party cookies (such as the DoubleClick cookie) together to inform, optimize, and serve ads based on someone’s past visits to our website.

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Our Company Commitment to Children’s Privacy

Protecting children’s privacy is especially important to us. It is our policy to comply with the Children’s Online Privacy Protection Act of 1998 and all other applicable laws. Therefore we restrict our web site to persons eighteen years or older.

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Public Forums

Please remember that any information you may disclose in any Subscriber Directory, or other public areas of our web sites or the internet, becomes public information. You should exercise caution when deciding to disclose personal information in these public areas.

Our Company’s Commitment to Data Security

Services and websites we sponsor have security measures in place to protect the loss, misuse, and alteration of the information under our control. While we make every effort to ensure the integrity and security of our network and systems, we cannot guarantee that our security measures will prevent third-party “hackers” form illegally obtaining this information.

In the Event of Sale or Bankruptcy

The ownership of The FoliPrime, Inc. may change at some point in the future. Should that occur, we want this site to be able to maintain a relationship with you. In the event of a sale, merger, public offering, bankruptcy, or other change in control of The FoliPrime, Inc. your information may be shared with the person or business that owns or controls this site. Opting out of receiving information from third parties will not affect our right to transfer your information to a new owner, but your choices will continue to be respected regarding fthe use of your information.

Where to Direct Questions about Our Privacy Policy

If you have any questions about this Privacy Policy or the practices described herein, you may contact us through the contact information provided on this web site.

Types Of Information We Collect

The following provides examples of the type of information that we collect from you and how we use that information.

Context
Types of Data
Primary Purpose for Collection and Use of Data
Account Registration
We collect your name and contact information when you create an account. We also collect information relating to the actions that you perform while logged into your account.
We use this information to provide account related functionalities to our users. Accounts can be used for easy checkout and to save your preferences and transaction history.
Client Information
We collect the name, and contact information, of our clients, affiliates, and their employees with whom we may interact.
We have an interest in contacting our clients and communicating with them concerning normal business administration such as projects, services, and billing.
Cookies and First Party Tracking
We use cookies and clear GIFs. “Cookies” are small pieces of information that a website sends to a computer’s hard drive while a web site is viewed. See our Cookie Section below for more information.
We use this information to ensure our website operates efficiently.
Cookies and Third Party Tracking
We participate in behavior-based advertising, this means that a third party uses technology (e.g., a cookie) to collect information about your use of our website so that they can provide advertising about products and services tailored to your interests on our website, or on other websites. See our Cookie Section below for more information.
Where required by law, we base the use of third party cookies upon consent.
Demographic Information
We may collect personal information, such as your age, location, and gender.
We use this information to comply with applicable laws.
Email Interconnectivity
If you receive email from us, we use certain tools to capture data related to when you open our message, click on any links or banners it contains and make purchases.
We use this information to understand how you interact with our communications to you.
Employment
If you apply for a job posting, or become an employee, we collect information necessary to process your application or to retain you as an employee. This may include, among other things, your Social Security Number. Providing this information is required for employment.
We use information about current employees to carry out our payment and benefits obligations. In some contexts, we are also required by law to collect information about our employees. We also use this information to have efficient staffing and work force operations.
Feedback/Support
If you provide us feedback or contact us for support we will collect your name and e-mail address, as well as any other content that you send to us, in order to reply.
We use this information in order to receive, and act upon, your feedback or issues.
Mailing List
When you sign up for one of our mailing lists we collect your email address or postal address.
We share information about our products and services with individuals that consent to receive such information. We also use this information to share information about our products or services.
Mobile Devices
We collect information from your mobile device such as unique identifying information broadcast from your device when visiting our website or when visiting one of our stores.
We use this information to identify unique visitors and understand how users interact with us on their mobile devices.
Order Placement
We collect your name, billing address, shipping address, e-mail address, phone number, and credit card number when you place an order.
We use your information to perform our contract to provide you with products or services.
Partner Promotion
We collect information that you provide as part of a co-branded promotion with another company.
We use this information to fulfil our promotions.
Surveys
When you participate in a survey we collect information that you provide through the survey. If the survey is provided by a third party service provider, the third party’s privacy policy applies to the collection, use, and disclosure of your information.
We use this information to understand your opinions and collect information relevant to our organization.
Sweepstakes or Contests
When you participate in a sweepstakes or contest we collect information about you which includes contact information to notify you if you are selected.
We use this information to operate the sweepstakes. In some contexts we are also required by law to collect information about those that enter into our sweepstakes.
Website Interactions
We use technology to monitor how you interact with our website. This may include which links you click on, or information that you type into our online forms. This may also include information about your device or browser.
We use this information to understand how you interact with our website to better improve it, and to understand your preferences and interests in order to select offerings that you might find most useful. We also have a legitimate interest in detecting and preventing fraud.
Web Logs
We collect information, including your browser type, operating system, Internet Protocol (IP) address (a number that is automatically assigned to a computer when the Internet is used), domain name, click-activity, referring website, and/or a date/time stamp for visitors.
We use this information to monitor our networks and the visitors to our websites. Among other things, it helps us understand which of our products or services is the most popular.

Revisions to This Policy

Our company reserves the right to revise, amend, or modify this policy, our Terms of Use and Service, and our other policies and agreements at any time and in any manner, by updating this posting. Your use of this site after such changes are implemented constitutes your acknowledgement and acceptance of there changes. Please consult this privacy statement prior to every use for any changes.

The owner of this website may receive compensation for recommendations made in reference ot the proucts or services on this website. This compensation may be in the form of money, services, or complimentary products and could exist without any action from a website visitor. Should you purchase a product or service that was recommnded by this website, it is understood that some form of compensation might be made to the website owner. For example, if you click on an affiliate link at this websaite and then make a purchase of the recommended product or service, the website owner may receive compensation.

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I long ago lost any faith in what is commonly known as mainstream “news” recognizing that it’s not just how a story is framed, but also what is omitted in what passes for information these days.  There are many, many great authors and thinkers in conservative thought who have the freedom to focus not on narrative and instead on substance.

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thanks, Steve

 

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