
Pepe Escobar: Dancing to Trump’s Disco Inferno


The irruption of Hangzhou-based Chinese tech start-up DeepSeek on the global stage was something for the ages, instantly decimating the spun-to-death “small yard, high fence” American strategy to smash China’s tech advances.
DeepSeek should indeed be seen as the “biggest dark horse” in the open-source Large Language Model (LLM) domain, now identified from Jakarta to Wall Street and Silicon Valley as potentially Beijing’s secret weapon in the AI war with the US. Even Mr. Disco Inferno was forced to admit DeepSeek’s breakthrough as a “wake-up call”.
At the heart of the matter we find two clashing models: neoliberal hypercapitalism versus meritocratic socialism.
The head of DeepSeek, Liang Wenfeng, is a fascinating geek. His given name (Wenfeng) means “Vanguard of Culture”; one of the meanings of his family name (Liang) is “bridge”. So he may be seen – as he is in China – as Mr. Bridge to the Vanguard of Culture (here’s Mr. Bridge in an excellent interview , in Chinese; please use auto-translate).
A Kunpeng 920 chip is displayed during an unveiling ceremony in Shenzhen, China, Monday, Jan. 7, 2019. Chinese telecom giant Huawei unveiled a processor chip for data centers and cloud computing as it expands into an emerging global market despite Western warnings the company might be a security risk.
Mr. Bridge pulled a spectacular Sun Tzu on US sanctions over exporting advanced graphic processing units (GPUs), especially Nvidia’s advanced chips. Moreover, Chinese Big Tech firms cannot compete with the financial firepower of US Big Tech.
So the answer was to develop cost-efficient powerful LLM models, without access to literally hundreds of thousands of Nvidia H100s chips. DeepSeek stated they had used just 2,048 Nvidia H800s and only $5.6million to train a model with 671 billion (italics mine) parameters: that’s a very small fraction of what OpenAI and Google spent to train models of the same size.
And everything was developed locally, via scores of PHDs from the top Chinese universities – Peking, Tsinghua, Beihang – and not American Ivy League experts.
So in a nutshell DeepSeek is a 100% Chinese LLM companywhich was capable to come up with open-source models and a free downloadable app for every consumer to use. That in itself destroys the current American-imposed neoliberal hypercapitalist AI business model.
The rules of the game indeed are being rewritten. So what is the – predictable – American response? Call for more sanctions. In parallel, DeepSeek was forced to suspend new registrations because its site suffered a massive cyberattack. Talk about the price to pay for eviscerating a humongous $1 trillion off the techno-feudalists gathered at the New York Stock Exchange.
Mr. Disco Inferno of course supports the commodifying of all data compared to free data for everyone. Right before the DeepSeek shock, he had – theoretically – secured as much as $1 trillion from the Saudis, including to a large extent investments to develop AI and data centers in the US.
The new game of course is just beginning. Stargate, OpenAI’s joint venture with Japan’s SoftBank, also heavily plugged by Trump, plans to spend at least $100 billion on AI infrastructure in the US. In parallel, Elon Musk’s xAI is massively expanding the Colossus supercomputer to contain more than 1million GPUs to help train its Grok AI models.
A visitor stand near a robotic surgeon from Chinese firm Medrobot demonstrating its skills on a rose during the 2023 World Artificial Intelligence Conference in Shanghai, Thursday, July 6, 2023.
I couldn’t get enough, so I had to self-destruct
Now to the war against the Global Majority. Inestimable Prof. Michael Hudson is adamant: in an absolutely must read essay, he concisely explains that “when Trump promised his voters that the United States must be the ‘winner’ in any international trade or financial agreement, he is declaring economic war on the rest of the world.”
The key Hudson take away: If nations in the Global South are to save their economy “from being plunged into austerity, price inflation, unemployment and social chaos”, they will have to “suspend payments on foreign debts denominated in dollars.”
It’s a work in progress: “Circumstances…are forcing the world to break away from the US-centered financial order. The US dollar’s exchange rate is going to soar in the short term as a result of Trump blocking imports with tarif