Top AI Investor Says Goal Is to Crash Human Wages

Former Intel CEO Pat Gelsinger creates new waves in AI through his latest venture. The open-source AI reasoning model R1 from DeepSeek has become the centerpiece of Gloo’s startup operations after its revolutionary adoption by the company. The combination of R1’s affordable operation and superior performance has triggered an Nvidia stock decline while propelling DeepSeek’s consumer application to the top of app store rankings.

DeepSeek demonstrated the training process of R1 by utilizing a 2,000 Nvidia H800 GPU data center during two months of operation that cost $5.5 million. New research findings from last week demonstrate that R1 achieves equivalent performance to leading reasoning models while using substantially less expensive hardware. The development demonstrates how open-source AI systems can challenge the market leadership of proprietary systems, including OpenAI and Anthropic.

Gelsinger, who started as a hardware engineer, now leads Gloo as chairman and actively promotes R1’s revolutionary potential. “DeepSeek reminds us of three critical lessons: According to him, “Lower costs expand markets, and open ecosystems succeed while ingenuity thrives under constraints.” Gloo uses R1 to develop Kallm, its AI-powered service, while transitioning away from OpenAI dependencies. Gelsinger predicted the widespread adoption of “good AI,” which will spread across wearable technology and electric vehicles.

Despite excitement, skepticism surrounds R1. Public skepticism exists about R1 because of its high costs and unclear data sources and performance metrics alongside Chinese involvement in its development. According to Gelsinger, these doubts about DeepSeek are unfounded because the system demonstrates how engineering creativity can advance AI beyond simple computational power.

According to Gelsinger, DeepSeek functions as an important alert system. Open ecosystems prove they can distribute AI technology to everyone. This development presents Western technology companies with both a chance to grow and a moment to recognize the strength of global innovation.

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