The US Economy is pretty vulnerable here. If it turns out that you, in fact, don't need a gazillion GPUs to build SOTA models it destroys a lot of perceived value. I wonder if this was a deliberate move by PRC or really our own fault in falling for the fallacy that more is always better.
Why do americans think china is like a hivemind controlled by an omnisicient Xi, making strategic moves to undermine them? Is it really that unlikely that a lab of genius engineers found a way to improve efficiency 10x?
They literally published all their methodology. It's nothing groundbreaking, just western labs seem slow to adopt new research. Mixture of experts, key-value cache compression, multi-token prediction, 2/3 of these weren't invented by DeepSeek. They did invent a new hardware-aware distributed training approach for mixture-of-experts training that helped a lot, but there's nothing super genius about it, western labs just never even tried to adjust their model to fit the hardware available.