Comment by tensor

1 day ago

State support has nothing to do with anything. Also, in practice the EU has its deepseek equivalent model in Mistral.

China grants up to 200% tax deduction on intangible assets acquired through R&D. Means your spending on AI training fees becomes a tax return amount or like appears as a magical donation deductible on the books. I don't know if DeepSeek is benefiting from exactly such a system, but that's generally how aggressively China seeks its advantages in high tech R&D.

Nobody else is or has been that aggressive. France on a Monday morning would be like $10b for Mistral in 3 years, and that'll be it. China is like $10b every year for 5 top companies for 5 years. Not necessarily to say such an all-in-doubling-down-always moves would be necessary or correct, but there is that kind of substantial funding disparity between China and the rest of the world.

  • > China grants up to 200% tax deduction on intangible assets acquired through R&D. Means your spending on AI training fees becomes a tax return amount or like appears as a magical donation deductible on the books.

    This is misleading. Deduction reduces taxable income and does not provide tax return. E.g. if your taxable income is $1000 and you spent $100 on R&D and qualify for those 200%, $800 will be taxed.

    • Although you can often take losses from a previous year to offset current income. So if you do a huge amount of capital investment you can offset against profits for years.

    • Thanks for adding that, still very interesting idea. Perhaps this >100% tax deduction could eventually be applied to human labor to help incentivize employment and subsidize it with automation profits.

I understand Mistral compared to DeepSeek Flash is less intelligent, late, more expensive, and a third of the speed.

Equivalent might be stretching it.

  • The latest Mistral preview already matches Deepseek and it's not even finished its training yet. But please do continue.

    • That was my understanding, and I wasn't aware such a preview exists.

      Feel free to share details.

      I'm positively surprised there is a new model from Mistral already.

My teenage son summarized Mistral in one sentence:

"Mistral is so bad, it's the only model my school doesn't bother to block"

> Also, in practice the EU has its deepseek equivalent model in Mistral.

In practice, European companies don’t use Mistral.

First acknowledge the reality, then we can propose solutions.

  • It is actually not unrealistic to imagine laws for eu gov software only to allow Mistral or Aleph alpha models. They are pretty good - on par with deepseek atleast. There are all kinds of similar requirements already from software stacks to databases.

    What I would see even more likely are requirements of no agent commits, use of only human written/vetted code under their name.

    • > on par with deepseek atleast

      For chatbot-style usage maybe, can’t really attest to that; for long-running, long-context “agentic” work including planning, within a harness etc., definitely not (yet).

      > What I would see even more likely are requirements of no agent commits, use of only human written/vetted code under their name.

      I mean in the end that’s what the Kernel project does now, IIRC? Everything has to have a response human’s sign-off.