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Deep Seek has sent shockwaves through the AI industry with its latest model, R1. Many are calling it the biggest AI development since the launch of ChatGPT. Built without high-performance Nvidia chips, Deep Seek’s model challenges the dominant AI training paradigm, raising critical questions about innovation, cost efficiency, and the future of AI development. Is this a breakthrough moment that will democratize AI, or does it signal new challenges for the industry? In this episode of AI-Curious, journalist Jeff Wilser sits down with Dr. Steven Waterhouse—known as “Seven”—a leading AI investor and co-founder of Nazare, a VC firm specializing in AI infrastructure. They break down what makes Deep Seek’s R1 model different, how its use of Mixture of Experts AI, quantization, and reinforcement learning has made it a powerful and cost-effective alternative to models from OpenAI, Anthropic, and Google DeepMind. They also explore the geopolitical and economic implications. Some have compared Deep Seek’s breakthrough to a Sputnik moment for AI, challenging U.S. dominance in artificial intelligence. Others argue that this marks a turning point where AI training can be done without relying on Nvidia GPUs, opening the door for cheaper, decentralized AI development. The conversation also examines the open-source vs. closed AI debate. Deep Seek has published open-weight models, allowing researchers and engineers to test and replicate its methods. But this also raises concerns about AI safety, jailbreaking risks, and the future of AI regulation. Whether you are an AI researcher, investor, or just curious about where the AI industry is heading, this episode provides insight into one of the most important developments in AI today.