The State of AI: the economic singularity

The Download: AI’s impact on the economy, and DeepSeek strikes again

DeepSeek has introduced two new AI models, including DeepSeek-V3.2, which aims to compete with OpenAI’s GPT-5 regarding reasoning capabilities. The company has managed to achieve this despite facing limitations in access to advanced computational chips.

OpenAI has issued a “code red” alert to its staff, prompting an urgent need to enhance ChatGPT. This initiative comes as competition from companies like Google and Anthropic intensifies. Future advertising and other projects have been postponed to prioritize this development.

There are discussions around identifying the signs of a potential AI investment bubble. Experts highlight that a major economic downturn could follow if this bubble bursts, while questions remain regarding the financing of the current surge in AI investment.

Some U.S. states, including California, are implementing laws to prevent AI discrimination, granting workers increased authority to challenge algorithmic decisions.

In an evolution of AI architecture, Pathway is working on a post-transformer model, striving to create alternatives to current technologies that rely heavily on transformer design.

The Indian government is requiring smartphone manufacturers to install a government app, a move that privacy advocates have criticized as excessive surveillance. Meanwhile, India’s tech professionals are increasingly seeking opportunities beyond the United States.

There is a significant rise in college students pursuing AI-related majors, with MIT reporting AI as the second-largest major after computer science, reflecting growing interest from both students and major tech companies in educational settings.

Concerns are also being raised about the preservation of America’s musical heritage, much of which is stored on aging studio tapes that may deteriorate over time.

Additionally, various celebrities are expressing their opposition to artificial intelligence, although fans continue to use AI tools for their fan-made content.

Finally, Samsung has launched its first tri-folding smartphone, which is set to retail for over $2,000 in South Korea, raising questions about consumer demand for such devices.

Source: https://www.technologyreview.com/2025/12/02/1128647/the-download-ais-impact-on-the-economy-and-deepseek-strikes-again/

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