alt Hacker NewsThis has the delightful and surely unintentional side effect of all but ensuring all federal agencies who want to use LLMs have to direct their budget to one of the domestic frontier labs (OpenAI, xAI), so that’s a nice big fat pipe of taxpayer money that’ll be going to backstop those cats while they deal with the fact that they’re getting their lunch eaten by competitors who didn’t decide the way to build a sustainable future was to incur future debts to the tune of a sizable percent of the GDP of a G20 nation.
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I'd guess a lot of government agencies (globally) will end up with their own compute clusters hosting open source models. Much cheaper at that scale and much less hassle than defining which critical data cannot be fed to an external llm.
Not sure if the US will fall under that since it's slightly less risky for the US government, but I wouldn't be surprised.
A lot of government agencies already started doing this and the US government is far from the only one banning on-prem Chinese open weight models. Can't answer whether this makes sense, but I do think a lot of policy makers just figure there are mostly comparable alternatives that don't carry that vague risk.
On the plus side, this should allow for more DeepSeek supply for consumers and private sector, and presumably lower prices. Which is great since DeepSeek provides like 10x more value/$ than openai an anthropic.
Two things can be true. Deepseek is a great model doing great things for democratizing AI and the federal government should never use a Chinese model for anything serious or sensitive, China will have access to literally everything. And before anyone gets upset over that, China would be crazy to use American models for anything sensitive because you have to assume the US government could access it. It goes both ways.
That's an outcome of the market strength of those companies though. A cloud provider located in the US could host only American and allied models and be a perfectly good candidate for the defense department to use.
The reason why OpenAI and Anthropic are going to get the business instead is because they are better than the open models.
You gotta make trade-offs.
Two facets here. Economy and Security. Is current US governemnt in favor of providing cheaper, less SOTA models to Americans at the cost of exposing US content to Chinese firms? Chinese firms by Chinese law are forced to handover whenever CCP asks them to.
Given all sensitive information, the security outjustify the cost here.
There are other areas we need to look at but for my analogy, this should work.