Analysis

Starmer’s ‘AI superpower’ plan in tatters after China’s DeepSeek causes US tech share collapse

Starmer’s ‘flagship’ plan was touted to offset his trashing of UK social good and protections – it lasted less than a fortnight (surprise)

Keir Starmer has made himself and his government the most hated in memory – quite a feat when he had Thatcher and Truss to beat – with a series of appalling and appallingly-managed decisions and announcements showing he is determined to out-Tory even the most toxic Tory. His feeble attempt to offset that didn’t even survive two weeks.

Starmer’s decision to keep 1.5 million of the UK’s poorest children and their families in desperate poverty and hunger, his and his equally awful Chancellor’s decision to freeze ten million pensioners and kill thousands each year by depriving them of the Winter Fuel Allowance, his and the vampiric Liz Kendall’s war on disabled and sick people, all while handing out cash to the obscenely rich, the abandonment of green spending promises – and every other promise, the list just goes on and on – have seen him reach lows in public approval polling and have him running scared even of the awful Reform limited company ‘party’.

But Starmer’s supposed ‘flagship’ ‘plan’ – if something so vague can be called a plan – that he hoped would offset the relentless negativity and incompetence of his six months in Downing Street so far was his ‘AI superpower’ slogan, which is nebulously supposed to transform the UK into the world’s leading nation for artificial intelligence.

That has crashed and burned this week with China’s revelation of its ‘DeepSeek’ AI technology, which outshines even the best US models and cost China less than US$6m to develop, compared to the many, many billions spent by US companies, so brightly that US tech stocks collapsed on the news:

China has made its AI software ‘open source’, allowing anyone to build on it and all but guaranteeing it the leading place in its field – and, in the process, shredding any hopes Starmer might have wanted to project for the UK to become the world’s leader. Retired Microsoft engineer Dave Plummer has made a video analysing DeepSeek’s strengths and why it is such a threat to US (and US poodle) dominance in the field, which he compared in scale to the shockwaves that the launch of the USSR’s Sputnik satellite created in a complacent US:

Starmer’s many detractors couldn’t help but mock the Truss-like blinkeredness, incompetence and brevity of Starmer’s ‘plan’.

And rightly so. Rather than invest to rebuild a nation ravaged by fourteen years of Tory austerity, Starmer is imposing austerity-squared and trying to blow the smoke of ‘AI’ into the eyes of those he’s robbing. But he’s not even good at that.

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17 comments

  1. Quick there must be another bandwagon passing about now that he can jump on? How about inventing a “wheel?”

    1. Yep, it’s another D’oh! moment for Starmer & his hapless band of fuckwits!

      Who lives by the gimmick, dies by the gimmick…

  2. Or how about doing what it says on the tin “The Labour Party”
    AI is another step towards global slavery, with all of us reliant on crumbs from the Kleptocrats table, completely under their control and cancelled if we step out of line
    But
    Who is this coming over the hill to save us all

    1. True Doug, but who did Starmer have breakfast with this morning, nice cosy chat, just to see what the country needs ….. I’ll give you a choice of three:
      1. Vulnerable people at a food bank
      2. Ordinary folk, – those “working people” being the phrase he likes to use. … or
      3. Rich business people

      Not much of a quiz was it. Everyone knew the answer ages before getting to it…..

      1. To answer your last question Doug, everyone know it’s Farage coming over the hill, Whether ANYONE thinks he’ll save us is a different matter.

    2. Spot on Doug:

      “Artificial generalised intelligence (AGI) is the holy grail of AI developers.

      It means that AI models would become ‘superintelligent’ way above human intelligence. When that is achieved, Altman promises, its AI won’t just be able to do a single worker’s job, it will be able to do all of their jobs: “AI can do the work of an organization.”

      This would be the ultimate in maximising profitability by doing away with workers in companies (even AI companies?) as AI machines take over operating, developing and marketing everything. This is the apocalyptic dream for capital (but a nightmare for labour: no job, no income).”

      https://thenextrecession.wordpress.com/2025/01/28/ai-going-deepseek/

  3. The good thing is that rather surprisingly China has released DeepSeek as Open Source Code which will allow anyone to utilise its methodology and coding.

    1. Musk, Zuck, and MS must be livid. There goes a trillion dollars. There also goes Keith’s latest grasp at growth. I’m sure Rache enjoyed being wined and dined at Davos by “my kind of people.”

      1. As noted in the link I posted down below, the tech bros – as they are referred to in this piece on this event…..

        https://www.dropsitenews.com/p/deepseek-openai-lina-khan-sam-altman?

        ….are simply going to plough on their course, like the Titanic steaming towards the iceberg, by trying to destroy any alternative to their dogmatic and inferior paradigm in order to make sure they have everything..

        No matter how much energy, water and resources it takes. No matter how many of those they consider to be inferior to themselves starve, or are displaced with no means to live.

        Musk is a transhumanist nut job prone to giving Nazi salutes. Gates is busy buying up productive farmland like it’s going out of fashion. Zuckerberg is little more than a freak of a human being. Soros is a bitter and twisted old man who wants to destroy anyone who does not agree with him before he shuttles off to Hades with the rest of his fellow clowns.

        How big a clue does anyone need to figure out these egotistical infants are taking us nowhere other them off the edge of a cliff?

    2. But but but….China are bad aren’t they, wee gobshite?

      But forget that. How about you address some of the issues raised in the OP regarding the object of your devotion?

      Because this is yet another one he’s got wrong.

      What do you think will be his next grandiose scheme and how long until that one falls flat on its arse?

      1. Back in April last year a US trade delegation, headed by Janet Yellan (then US Treasury Secretary, went cap in hand to China with the usual bluster.

        simplicus the thinker did an interesting piece analysing the why’s wherefores and different paradigm which had reduced senior US trade officials to come out with desperate statements along these lines:

        “Market-based US and European economies are struggling to survive against China’s “very effective” alternative economic model, a top US trade representative has warned, according to Euractiv.

        Katherine Tai told a briefing in Brussels on Thursday that Beijing’s “non-market” policies will cause severe economic and political damage, unless they are tackled through appropriate “countermeasures.” Tai’s remarks came as the EU-US Trade and Technology Council (TTC) kicked off in Leuven, Belgium.

        “I think what we see in terms of the challenge that we have from China is… the ability for our firms to be able to survive in competition with a very effective economic system,” Tai said in response to a question from Euractiv.

        https://simplicius76.substack.com/p/yellen-dispatched-to-beg-china-for

        What is freaking out the chinless and clueless self-defined wonders and masters of the universe in the Collective Worst is their failed and collapsing paradigm is being shown up and undermined by better examples outside of their control.

        Hence, everyone and everything else is subject to a propaganda vilification process 24/7/365 to turn anyone and anything not of their dogma into sub-human animals, dictators, authoritarians, etc etc in the minds of western populations. ie by lying through their teeth.

        Which the naive, gullible and clueless Billy boys of this world fall for hook, line, sinker and copy of Angling Times.

        An approach which also includes sanctions, tariffs, criminalisation, bans, threats, extortion, violence – from colour revolutions all the through bombing back to the stone age , proxy wars, trade wars, economic war and direct kinetic war.

        Not just on materials but also ideas, speech, thought, action, choices etc. No other example which does what it says on the tin and shows up the failed neo-liberal, neo-conservative and neo-feudal model for the bag of shit it really is permitted. Up to and including forbidding subject populations on the Home Front from using or benefitting from those better examples and non-zero sum approaches.

        The tech bros and their pet captured politicians will certainly attempt to find ways of reducing choice among populations to the failed AI model of Altman et al in order to extract a maximum free lunch via the rent around their enclosure model. Up to and including banning subjects from using anything else via criminal sanctions if necessary in pursuit of the AGO Holy Grail.

        Billy, with his fragile little ego, having committed to this TINA paradigm, is in Zugzwang. Hence, the complete denial of reality that other more effective and viable alternatives are already operating. And in the fantasy world of the Billy’s among us, Not being ‘of the West’ does not count. Because the “we” he is desperate to be a part of self-defines itself as the biggest, baddest and bestest in everything.

        It is part of the superior “Garden” compared to the untermenschen of the ” Jungle”.

        So I would not hold my breath, Toffee, for any light to dawn. That sad, pathetic numpty is going down with the rest of the Titanic.

    3. Not really surprising. Simply a different non-zero sum approach to the zero-sum one of the rentier mindset of what passes for leadership in the West and its failing winner takes all paradigm. Epitomised by Trump who, unlike his fellow elites, is at least honest in that he is prepared to say the quiet parts out loud rather than the bullshit pretence about ‘democracy’ and ‘human rights'(the culture of “I win- everyone else has to lose).

      Hence, the current meme doing the rounds:

      Reporter: “What are your plans ?”

      USA rep: “We’re taking over Canada, Greenland, and Panama!”

      Reporter: “Why do you hate Russia ?”

      USA rep: “They invaded another country, you dolt!”

      Whereas, in recent decades, the Chinese approach and its paradigm – which even a US trade delegation conceded publicly last April produced better outcomes than the Western elites system which they continue, cult like, to cling to – has pulled 750 million of it’s populace out of poverty (meeting the basics of Marlow’s hierarchy of needs).

      Whereas we are going in the opposite direction. Go figure.

      And as a result those who think they know better continue down the same cul-de-sac. As highlighted here…..

      https://thenextrecession.wordpress.com/2025/01/28/ai-going-deepseek/

      …..which notes that despite the more innovative and cost effective Chinese approach which by passes the US/Western advanced chip embargo/sanctions….

      “Nevertheless, the AI titans are not yet the titanic. They are going ahead with ‘scaling up’ by ploughing yet more and more billions into data centres and more advanced chips. This eating up computer power exponentially…….

      …..[with] no consideration of what mainstream economists politely like to call ‘externalities’…….”

      such as

      “…..As the US faces droughts and wildfires, the AI companies are sucking up deep water to ‘cool’ their mega data centres to protect the chips. More than that, Silicon Valley companies are increasingly taking control of water supply infrastructure to meet their needs. Research suggests, for instance, that about 700,000 litres of water could have been used to cool the machines that trained ChatGPT-3 at Microsoft’s data facilities…..”

      Then there is energy

      “…..Training AI models consumes 6,000 times more energy than a European city. ..”

      And Resources:

      “…..Furthermore, while minerals such as lithium and cobalt are most commonly associated with batteries in the motor sector, they are also crucial for the batteries used in datacentres. The extraction process often involves significant water usage and can lead to pollution, undermining water security…..”

      Whilst the Chinese approach has produced a superior end result which is being shared the Western Elite Oligarch Class continue full steam ahead with a far less effective and efficient approach in order put an enclosure around an inferior product to extract maximum rent:

      “Sam Altman, the previous non-profit hero of Open AI, but now out to maximise profits for Microsoft, argues that yes, unfortunately there are ‘trade-offs’ in the short term, but they’re necessary to reach so-called AGI; and AGI will then help us solve all these problems so the trade off of ‘externalities’ is worth it.”

      And what is AGI? More to the point, what is the objective of those pushing AGI?

      “….. Artifical generalised intelligence (AGI) is the holy grail of AI developers.

      It means that AI models would become ‘superintelligent’ way above human intelligence. When that is achieved, Altman promises, its AI won’t just be able to do a single worker’s job, it will be able to do all of their jobs: “AI can do the work of an organization.”

      This would be the ultimate in maximising profitability by doing away with workers in companies (even AI companies?) as AI machines take over operating, developing and marketing everything. This is the apocalyptic dream for capital (but a nightmare for labour: no job, no income).

      That’s why Altman and the other AI moguls will not stop expanding their data centres and developing yet more advanced chips just because DeepSeek has undercut their current models. Research firm Rosenblatt forecast the response of the tech giants: “In general, we expect the bias to be on improved capability, sprinting faster towards artificial general intelligence, more than reduced spending.” Nothing must stop the objective of super-intelligent AI.”

      But tell us, Billy, in this [checks notes] ‘only viable” TINA model who is going to be able to buy anything when the Oligarchs which people like you shill for with your cheerleading and their little toys have sucked all the money, all the land, all the productive capacity and all the resources to a tiny handfull of multi-trillionnaires?

      How will the majority of people live with no work and no income? When everything is owned by the sociopaths you champion? How will, your family or your descendents live, Billy?

      Because no matter how syscophantic you are towards them they will not look after you. You are not one of them, you see.

  4. It’s not just that DeepSeek is open source, it’s also how cheap it is to use compared to the comparable US models. The impressive thing about it for me was seeing its ‘train of thought’ as it worked to find the answer. That’s been a big sticking point for the ‘usefulness’ in deployment of a lot of these models.

    I was watching Theo Browne’s explainer yesterday – some of it is a bit techy as it’s aimed at software engineers, but it’s great to see how DeepSeek ‘thinks’ through the problem it has been set.
    https://www.youtube.com/watch?v=by9PUlqtJlM

    Great explainer vid there from Dave Plummer. I think this is a big hit on the US AI $$$ generating system. It’s also really interesting to think how this actual open source model can be used in a wide range of contexts and industries whilst allowing people to keep control of their own data rather than it being held on some cloud service.

    1. This is why China and anyone else taking a different approach and following a different paradigm is the enemy. Why we are subject to so much vitriol laden propaganda about everyone outside the Collective Worst.

      They set a good example which results in better outcomes using a superior social, economic and political paradigm.

      A reality which totally freaks out these infants running the minority of the planet that is the Collective West because they are really convinced in their delusion that not only (a) are they the biggest baddest and bestest in the entire history of the known and unknown universe (which is why the only sure fire way of verifying the existence of so-called Alien – off planet – life will be when the US and UK declare them a threat to their hegemony and declare war on them); but also (b) that their way of doing things represents the highest possible progress in history and that no more human history is possible.

      We are run by the terminally mad in this part of the planet.

  5. DeepSeek 50 Neo-Liberal Capitalists 0.
    The latter HATE anything that’s free.
    “Most downloaded free app in USA Monday.”
    The fact that only a Corbyn type programme can transform society & the economy still remains.
    And perhaps Wolfgang Streekt’s view hits the nail on the head re the rich & their puppets: “They haven’t a clue what to do.”
    But Left Wing Democratic Socialists do.
    It is very likely that Right Wing Labour will be deservedly out on their arses at the next GE and if we don’t organise a new Left Wing Democratic Socialist Party as soon as possible, not 6 weeks before the GE, then we could end up with a Reform/Tory Govt – the most extreme UK Govt ever?
    Have been checking out ‘Collective’ and this could potentially be such a party with links to Corbyn & the other Independent MPs + Left Ex trade union leaders &
    with Corbyn we would have name recognition amongst the public – a ‘brand name.’
    You can sign up for their newsletter or join them now.

    1. I had this thought this morning, and found the irony in it highly amusing. The world’s richest American companies, belonging to Musk, Zuck, MS, etc etc were going to make themselves even richer by producing a system designed to put loads of folk out of work. One Chinese startup, suddenly, whilst not actually putting the rich Yanks out of work, certainly destroyed much of their wealth! Funny? I’ll say!

      1. Indeed, winteringham, Yet, right on cue the predictable and yawn inducing propaganda onslaught gets straight out of the blocks in another desperate attempt to bamboozle the populace into sticking with the free lunch for soon to be trillionaires.

        As noted here……

        https://steelcityscribblings.uk/wp/2025/01/29/deepseek-and-mandy-rice-davies/

        ……in a masterly demolition of The Official Narrative now booming out in banner headlines with yet another round of evidence free allegations of ‘foreign’ jiggery-pokery – to join the already long list which includes Zionist claims of non-existent beheaded babies; lethal nerve gas which fails to work; claims of babies ripped out of incubators and umpteen similar fictions which pollute our information space.

        “Well that’s one way of scaring off Western potential users! Leave aside the Orwellian extent to which the likes of Google and FB hoover up our personal data to sell to other corporations and US spy agencies – if the product is free, the product is you – while stenographers like Simon Tisdall (of the so called Guardian) intone grave warnings on China’s sinister intent. ”

        As Mandy Rice-Davies observed about Lord Astor all those years ago “Well he would (say that) wouldn’t he?”

        To which could be added the well known quote from Shakespeare’s Hamlet about the stenographers of The Official Narrative protesting too much.

        As John Davis’s 1804 novel The Post Captain; or, the Wooden Walls Well Manned; Comprehending a View of Naval Society and Manners observed:

        “You may tell that to the marines … may I be damned if the sailors will believe it”

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