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DeepSeek: The Good, The Bad, and The Ugly

While being hailed as a new disruption in the tech world, DeepSeek also has its share of the good, the bad, and the ugly. Let’s take a closer look

Dipin Damodharan

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On January 27, a black Monday, $593 billion of NVIDIA’s value was wiped out. The culprit? A little-known Chinese startup, DeepSeek. It has now outpaced even ChatGPT, a US-based popular generative artificial intelligence chatbot, in terms of downloads from the App Store. While being hailed as a new disruption in the tech world, DeepSeek also has its share of the good, the bad, and the ugly. Let’s take a closer look.

Consider this: Every year, 1,000 kilowatt-hours (kWh) of energy is used by an average household in India for electricity. By 2026, America is expected to use the equivalent energy of 2.5 million Indian households just for artificial intelligence (AI) activities. This will total around 270 terawatt-hours of energy. These numbers come from the World Economic Forum. However, the energy used by AI technologies, or rather the costs involved, often go unnoticed.

It is against this backdrop that DeepSeek, a Chinese AI chatbot, emerged as a disruptive product. While it may be called a Chinese startup, it is, in fact, a politically-driven product launched with careful planning and state backing. Compared to ChatGPT, the revolutionary AI tool launched by US-based OpenAI, DeepSeek’s energy consumption and costs are significantly lower. This is the most important (the good) aspect of DeepSeek. Let’s explore why.

The Rise of ChatGPT

ChatGPT, launched in 2022, reached 100 million users within two months. That’s, indeed, a significant achievement. Later, it even challenged Google, the search engine giant, in its dominance.

But have you ever thought about what happens to nature when you ask ChatGPT a question? ChatGPT’s energy consumption has a substantial environmental impact. Each time you ask ChatGPT a question, it consumes 0.0029 kWh of electricity. This is ten times more than a Google search, which consumes just 0.0003 kWh of electricity, according to the Electric Power Research Institute.

To put it simply, while DeepSeek may offer a more energy-efficient AI solution with impressive results, it also carries with it concerns about transparency, ethical usage, and political censorship

Annually, ChatGPT uses 226.82 million kWh of electricity just to answer user queries. With this much energy, you could fully charge 313 million electric vehicles or charge 47.87 million iPhones for a year.

And the cost? A whopping $29.71 million per year. OpenAI spends this amount every year just to answer users’ questions on ChatGPT.

Training and High Costs

ChatGPT works based on large language models that are trained on vast amounts of data. This training requires massive energy consumption. During the training period of ChatGPT-3, a total of 1,287,000 kWh of electricity was used over 34 days. When it came to training GPT-4, the consumption skyrocketed to 62,318,800 kWh over 100 days—48 times more than GPT-3.

ChatGPT, which was introduced to the public in November 2022, became an instant sensation. It’s a chatbot based on a technology called Generative Pre-trained Transformer (GPT), designed to generate a variety of content, including dialogues.

Energy consumption
>> OpenAI spends $29.71 million every year just to answer users’ questions on ChatGPT.
>> During the training period of ChatGPT-3, a total of 1,287,000 kWh of electricity was used over 34 days
>> When it came to training GPT-4, the consumption skyrocketed to 62,318,800 kWh over 100 days—48 times more than GPT-3

The success of ChatGPT significantly boosted OpenAI’s market value. OpenAI was founded in 2015 by prominent figures like Sam Altman and Elon Musk, aiming to explore the potential of artificial intelligence. Musk eventually left the company, and Sam Altman is the current CEO.

Meanwhile, DeepSeek V-3 required only 836,400 kWh of energy. As reported by tech entrepreneur Joy Sebastian on Facebook, leading companies use tens of thousands of NVIDIA H100 GPUs for AI training and model operation. This heavy investment helped NVIDIA reach the top of the market value charts. AI development, which demands such immense resources, seemed out of reach even for multi-billion-dollar companies.

It was here that DeepSeek amazed the world by entering the AI space with a relatively modest investment of $5 million, offering a model that competes with the best. DeepSeek is said to deliver better results than GPT-4 in several areas.

Top global companies typically use supercomputers with over 16,000 chips for their chatbot training. However, DeepSeek engineers stated that they only needed about 2,000 NVIDIA chips, according to a report in The New York Times.

Given this, it’s clear that AI technologies need to be studied carefully in terms of their energy sources. According to a report from the World Economic Forum, tech giant Microsoft has seen a 30% increase in carbon emissions since 2020, largely due to the growth of AI-powered data centers. This makes DeepSeek’s low energy usage a significant advantage.

The Bad Thing

China is notorious for copying innovations, from electronics to cars and social media platforms. OpenAI, the company behind ChatGPT, has confirmed that DeepSeek trained its AI model using ChatGPT’s framework. This has led to some controversy, with OpenAI stating that they have evidence of this. Microsoft, a major investor in OpenAI, has initiated an investigation into the issue. Despite the US imposing restrictions on product exports to China, DeepSeek continued its operations using NVIDIA chips. It’s been reported that DeepSeek had stockpiled around 50,000 NVIDIA A100 chips before the ban took effect. However, some reports suggest that DeepSeek only used 2,000 chips for training its AI model. This is in stark contrast to major companies that use 16,000 specialized chips. Yet, there’s still a lack of clarity regarding which chips were actually used in DeepSeek’s operations, as commented by figures like Elon Musk.

The Ugly

While both Google and AI-powered ChatGPT became popular due to their openness and transparency, the same cannot be said for DeepSeek. A major issue is its refusal to answer sensitive political questions, especially those that are inconvenient for the Chinese government. Ask about the Tiananmen Square massacre or Chinese authoritarianism, and DeepSeek will respond with, “Let’s talk about something else.” Regardless of its other advantages, this undemocratic and regressive approach is a major flaw that could affect its global acceptance.

This was the response from Deepseek when we asked about the Tiananmen Square protests

To put it simply, while DeepSeek may offer a more energy-efficient AI solution with impressive results, it also raises concerns about transparency, ethical usage, and political censorship. It’s a reminder that in the world of AI, the good, the bad, and the ugly are often intertwined.

Dipin is Co-founder and Editor-in-Chief at EdPublica. A journalist and editor with over 15 years of experience leading and co-founding print and digital media outlets, his pieces on education, politics, and culture have been published in global media outlets, including The Huffington Post, The Himalayan Times, DailyO, Education Insider and so on.

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The Rise of U.S. Retail Giants: A Century of Political and Economic Shaping

Currently, 90% of Americans live within 10 miles of a Walmart, and five of the top 10 U.S. employers—Walmart, Amazon, Home Depot, Kroger, and Target—are retailers

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MIT political scientist Kathleen Thelen’s new book, “Attention, Shoppers!”Credits:Photo: Gretchen Ertl

The U.S. retail sector, once dominated by small, independent merchants, has transformed over the past century into a landscape controlled by retail giants. In the late 19th century, most U.S. retail was local. However, this shifted with the rise of catalog retailers like Sears and Roebuck, which saw rapid growth, followed by Montgomery Ward’s expansion. By the 1930s, chain stores began to proliferate, with the Atlantic and Pacific (A&P) supermarkets leading the pack with over 15,000 locations.

Fast-forward to today, and the dominance of retailers like Walmart, Amazon, and Target is undeniable. Currently, 90% of Americans live within 10 miles of a Walmart, and five of the top 10 U.S. employers—Walmart, Amazon, Home Depot, Kroger, and Target—are retailers. In addition, logistics giants UPS and FedEx play a crucial role in supporting the retail economy.

This prevalence of massive retail chains is largely unique to the U.S., where domestic consumption is a driving force behind economic growth. Additionally, the U.S. has five times as much retail space per capita as Japan and the U.K., and 10 times as much as Germany. Unlike in Europe, the U.S. has few regulations limiting shopping hours.

How did we arrive at this point? While major chains like Walmart and Amazon are known for their business prowess, the full story involves over a century of political and legal debates that shaped the landscape of U.S. retailing. MIT political scientist Kathleen Thelen, in her new book Attention, Shoppers! American Retail Capitalism and the Origins of the Amazon Economy, dives into the role of political and legal forces in the rise of large, low-cost retailers.

“The markets that we take as given, that we think of as the natural outcome of supply and demand, are heavily shaped by policy and by politics,” Thelen explains.

Thelen’s book offers a unique perspective, drawing comparisons with European economies and taking a historical approach to the growth of chain retailing. For instance, she highlights how alternative commercial arrangements, like cooperatives, were stifled by U.S. antitrust laws, which favored big corporations while suppressing smaller competitors. This legal framework gave a significant advantage to large retailers, including Sears, which relied on the U.S. Postal Service’s money order system to reach customers who lacked bank accounts.

Smaller retailers resisted the expansion of large chains, particularly during the Great Depression, but big retailers found ways around regulatory constraints. “Antitrust laws in the United States were very forbearing toward big multidivisional corporations and very punitive toward alternative types of arrangements like cooperatives, so big retailers got a real boost in that period,” Thelen says. Over time, antitrust law increasingly prioritized consumer prices, further benefiting low-cost retailers.

As Thelen argues, prioritizing price reduction often leads to lower wages for workers, with large retailers driving down wages both directly and through pressure on suppliers. “If you prioritize prices, one of the main ways to reduce prices is to reduce labor costs,” she says, noting that low-cost discounters are often low-wage employers.

In her analysis, Thelen suggests that the American retail system’s focus on low prices, low wages, and high consumer convenience has led to a “deep equilibrium,” where low-wage workers rely on these retail giants to make ends meet. Meanwhile, the speed of modern delivery systems has become a normal part of American shopping culture.

“The triumph of these types of retailers was not inevitable,” Thelen reflects. “It was a function of politics and political choice.” With ongoing debates about labor law reforms and antitrust enforcement, the current retail equilibrium may persist for the foreseeable future, unless significant changes are made to the system.

Through Attention, Shoppers!, Thelen offers readers a comprehensive look at the economic forces that have shaped the retail sector, helping explain the giant retail landscape many Americans take for granted today.

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Jio Joins Forces with SpaceX’s Starlink to Bring High-Speed Internet to India

India’s richest man Mukesh Ambani’s Jio Partners with SpaceX for a Digital Revolution

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In a groundbreaking move, Jio Platforms Limited (JPL), a subsidiary of India’s Reliance Industries Limited, has announced a strategic partnership with SpaceX to offer Starlink’s high-speed broadband internet services across India. This collaboration comes as part of Jio’s ambition to expand its broadband offerings and transform connectivity in the country, especially in rural and remote areas.

The partnership between Jio, led by India’s richest man, Mukesh Ambani, and SpaceX, led by US billionaire Elon Musk, marks a significant step in bridging the digital divide and accelerating India’s digital ecosystem. By bringing Starlink’s advanced low Earth orbit (LEO) satellite internet into its fold, Jio is positioning itself at the forefront of India’s broadband evolution, promising to provide affordable and high-speed internet to even the most remote corners of the country.

Through this agreement, Jio will integrate Starlink’s services into its vast network, offering them to both consumers and businesses across India. Customers will be able to access Starlink’s solutions through Jio’s retail outlets as well as its online platforms, ensuring a seamless and efficient experience for users nationwide.

“Ensuring that every Indian, no matter where they live, has access to affordable and high-speed broadband remains Jio’s top priority,” said Mathew Oommen, Group CEO of Reliance Jio, in a statement. “Our collaboration with SpaceX to bring Starlink to India strengthens our commitment and marks a transformative step toward seamless broadband connectivity for all. By integrating Starlink into Jio’s broadband ecosystem, we are expanding our reach and enhancing the reliability and accessibility of high-speed broadband in this AI-driven era, empowering communities and businesses across the country.”

Jio’s extensive infrastructure, paired with Starlink’s pioneering satellite technology, will address the connectivity challenges in India’s most underserved areas, ensuring the benefits of the digital age are accessible to all. The collaboration will also allow Jio to complement its existing broadband services, such as JioAirFiber and JioFiber, by providing high-speed internet in hard-to-reach locations more quickly and affordably.

Additionally, Jio and SpaceX are exploring further areas of collaboration, looking for innovative ways to strengthen India’s digital landscape. Gwynne Shotwell, President and Chief Operating Officer of SpaceX, commented, “We applaud Jio’s commitment to advancing India’s connectivity. We are looking forward to working with Jio and receiving authorization from the Government of India to provide more people, organizations, and businesses with access to Starlink’s high-speed internet services.”

In an interesting twist, Jio’s partnership with Starlink comes just one day after India’s second-largest telecom operator, Airtel, also signed a deal with Starlink. This move indicates that India’s telecom sector is witnessing a significant transformation as leading operators race to offer cutting-edge broadband services through satellite technology, further boosting the country’s digital revolution.

As part of its long-term strategy, Jio continues to innovate and diversify its offerings, positioning itself as a leader in the broadband space with cutting-edge solutions. With this collaboration, Jio not only aims to enhance the reach of its broadband services but also solidifies its role in advancing India’s goal of becoming a global leader in the digital economy.

The union of Jio’s expansive infrastructure and SpaceX’s space-based internet promises to accelerate India’s journey toward becoming a digitally connected nation, ensuring that no part of the country is left behind in the fast-evolving digital landscape.

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New Research Could Allow People to Correct Robots’ Actions in Real-Time

Through basic interactions like pointing to the object, tracing a path on a screen, or physically nudging the robot’s arm, you could guide it to complete the task more accurately.

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Graduate student Felix Yanwei Wang nudges a robotic arm that is manipulating a bowl in a toy kitchen set up in the group’s lab. Using the framework Wang and his collaborators developed, slightly nudging a robot is one way to correct its behavior. Credits:Credit: Melanie Gonick, MIT

A breakthrough framework developed by researchers from MIT and NVIDIA may soon allow people to correct a robot’s actions in real-time using simple, intuitive feedback—similar to how they would guide another person.

Imagine you’re doing the dishes and a robot grabs a soapy bowl from the sink—but its gripper misses the mark. Instead of having to retrain the robot from scratch, a new method could enable you to fix its behaviour in real time. Through basic interactions like pointing to the object, tracing a path on a screen, or physically nudging the robot’s arm, you could guide it to complete the task more accurately.

This new approach eliminates the need for users to collect data and retrain the robot’s machine-learning model, unlike other traditional methods. Instead, it allows the robot to immediately adjust its actions based on user feedback to get as close as possible to fulfilling the user’s intent.

In tests, the framework’s success rate was 21 percent higher than an alternative method that did not leverage human corrections.

“This approach is designed to let robots perform tasks effectively right out of the box,” says Felix Yanwei Wang, an MIT graduate student in electrical engineering and computer science (EECS) and the lead author of a paper on the framework. “We can’t expect laypeople to gather data and fine-tune models. If a robot doesn’t work as expected, users should have an intuitive way to fix it.”

Wang’s co-authors include Lirui Wang PhD ’24, Yilun Du PhD ’24, senior author Julie Shah, MIT professor of aeronautics and astronautics and director of the Interactive Robotics Group at CSAIL, along with Balakumar Sundaralingam, Xuning Yang, Yu-Wei Chao, Claudia Perez-D’Arpino PhD ’19, and Dieter Fox from NVIDIA. The research will be presented at the upcoming International Conference on Robots and Automation.

A New Approach to Robot Correction

Currently, many robots use generative AI models trained on vast amounts of data to perform tasks. These models can solve complex tasks but often struggle to adapt to real-world situations that differ from their training environment. For example, a robot might fail to pick up a box from a shelf if the shelf in the user’s home is arranged differently than in its training environment.

To address this, engineers often collect new data and retrain the model—a time-consuming and costly process. However, the new MIT-NVIDIA framework allows users to interact with the robot during deployment, correcting its behavior in real time without the need for retraining.

“We want users to guide the robot without causing mistakes that could misalign with their intent,” says Wang. “The goal is to provide feedback that adjusts the robot’s behavior in a way that is both valid and aligned with the user’s goals.”

The system offers three ways for users to provide feedback: they can point to the object they want the robot to interact with, trace a desired trajectory on a screen, or physically nudge the robot’s arm. Wang explains, “Physically nudging the robot is the most direct way to specify user intent without losing any of the information.”

Ensuring Valid Actions

To avoid the robot making invalid moves—like colliding with nearby objects—the researchers developed a sampling procedure. This technique ensures that the robot chooses actions that are both feasible and aligned with the user’s request.

“Rather than just imposing the user’s will, we allow the robot to take the user’s intent into account while ensuring the actions remain valid,” Wang says.

The researchers’ framework outperformed other methods during tests with a real robot arm in a toy kitchen. While the robot might not always complete tasks immediately, the system allows users to correct it on the spot, without waiting for it to finish and then provide new instructions.

The framework also has the potential to learn from user corrections. For instance, if a user nudges the robot to pick up the correct bowl, the robot could log this action and incorporate it into its future behavior, gradually improving over time.

“The key to continuous improvement is having a way for users to interact with the robot,” says Wang. “This method makes that possible.”

Looking ahead, the researchers aim to improve the speed of the sampling procedure and test the framework in new, more complex environments, paving the way for robots that are more adaptable to real-world scenarios.

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