DeepSeek vs Openai

People are saying that DeepSeek understated the costs to train their models, but they’re missing a mathematical fundamental truth.

Intelligence scales with constraints, not compute.

Every single **DAMN** time for any new industry.

It happened with the aircraft industry when making engines. Also happened with internet when laying fiber. If you know information theory, Shanon found that C = B log₂(1 + S/N) and the whole industry realized laying more cable was pointless

Reasoning needs constraints, not compute. This is why DeepSeek achieved with $5.5M what others couldn't with billions. DeepSeek understood constraints, and was constrained by US sanctions and compute limitations.

NVIDIA's drop isn't about one competitor - it's about fundamental math.

I = Bi(C²) explains everything.

That’s what I wrote about in my previous blog post before this one.