Comment by culi
2 days ago
Maybe: "Leaked Deepseek transcripts reveal plan to pause fundraising due to compute gap"
I don't know what "compute gap" means in this context though and it's not clear that that's why they plan to pause fundraising or if the title is conflating.
yep. the word they use is probably 克制 or self-restraint. no need to raise so much cash if you can't use it.
in his article he talks about the negative aspects of getting everything you want. (all the money, brightest minds, biggest share in AI) etc. he says that these are the things that will cause a company to fail.
I shouldn't win too hard, because then I'll lose?
Yes. Once you're in such a comfortable position that you'll keep making lots of cash regardless of whether you do well or not, there is little incentive to make good decisions, let alone take risks. This is known as the "curse of Oil" and is also what Intel's decline is attributed to.
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Sudden availability of capital and the perceived need to be seen doing something with it can be a curse. WeWork comes to mind, eg. Stay lean and mean until you actually need the capital. A company like DeepSeek will have zero issues raising anytime.
Yep. Classic “giant series A, company gets amazing office space” vibes.
> I shouldn't win too hard, because then I'll lose?
Yes. It's a known thing.
Raising more money ≠ winning harder.
“Raising cash” isn’t necessarily “winning” since you have to give up equity/control, usually.
Problem of the local maxim, extreme dependency is the same as evolutionary pressure to specialize for it, eventually the process owns you.
Unless they have a shortage of mathematicians, physicists, ... it seems a fundraiser could help bypass a compute gap by focusing even more on inference and training efficiency.
is this similar to Meta starting to rent out own compute as they cant seem to do much with it and monetising it is much better ROI?...
Sorry to barge in here. I couldn't find a good place to place
https://github.com/demo-zexuan/liang-wenfeng-investor-meetin...
The current link is 404, can mods update to above, detach, make sticky?
(No response from mods, understandable)
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The maturity of leadership in China seems to be on a whole different level from the U.S.
Lots of companies in the U.S. have fallen victim to that syndrome, but if you used the word "restraint" in that context in Silicon Valley most people would look at you like you're insane.
Yeah, wouldn't it makes sense to increase fundraising, so as to acquire more compute to close the gap?
I guess they likely can't right now due to no hardware available, either cause of bans or already all booked.
I gather this is the whole point of the original article. It seems to have been pulled, so I can't confirm.
At what point do the AI companies start building their own hardware, I wonder.
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Perhaps it's akin to a mineshaft gap?
> if the title is conflating
The title is certainly a great conflation. Any seeker of capital would want to regroup after an unfiltered leak of this magnitude, if for no other reason than to secure the forum from future leaks. The comments about the unlikelihood of enormous future profits were at least as consequential with regard to capital investment as anything else that was said.