Tuesday, January 28, 2025

"Trump is now urged to release the Jeffrey Epstein files after order to declassify 'everything' on JFK"

There have to be some nervous billionaires, celebrities and world leaders with this news.

An exclusive from the Daily Mail, January 24:

Donald Trump is being urged to release the Jeffrey Epstein files a day after he signed an executive order divulging all files related to John F. Kennedy's murder. 

Tennessee Republicans Sen. Marsha Blackburn and Rep. Tim Burchett revealed to DailyMail.com they are pushing to have evidence on the nefarious financier unveiled. 

The senator has been advocating for the sealed Epstein documents to be released for years, an effort Burchett joined early on. 

Blackburn has pushed to uncover unredacted versions of Epstein's flight logs and and an unredacted version of Ghislaine Maxwell's 'little black book' full of contacts and addresses - an effort she's now seeking Trump to act on. 

And she's advocating for the Trump administration's Department of Justice to release additional evidence like prison footage and communications leading up to Epstein's death. 

'Jeffrey Epstein built a disgusting global sex trafficking network that caused irreparable damage to countless women,' she told DailyMail.com in a statement.

'Americans deserve to know exactly who was affiliated with this network. This is not about celebrities - this is about what happened to victims and survivors.'

Burchett similarly told DailyMail.com by text he too is re-upping his fight for the Epstein files now that Trump is in office and Republicans hold control....

....MUCH MORE

The amazing thing to remember is that while Ghislaine Maxwell was convicted of procuring minors for sex with the previously mentioned billionaires, celebrities and world leaders, the men she was procuring for were not named.

Possibly also of interest, yesterday's "Is Linked-In Co-Founder/Greylock Partner Reid Hoffman Still Living In The U.S.? He's Saying Nice(er) Things About Donald Trump"

Additionally the spooks have to be a bit freaked out. Here's a quote attributed to Julian Assange, though I've never seen the original:

https://img.ifunny.co/images/f2f561e977fe280a62bc493dd2b27ab4e33d7b02351df9b907f7f984b52b8484_1.jpg

Whether he said it or not, the truth of the essence of the thought would be apparent to anyone who has seen the sausage being made, or J. Edgar Hoover in a dress. 

Here's the outro from a November 2024 post:

....As noted in the intro to November 3's "60 Years Ago, Congress Warned Us About the Surveillance State. What Happened?":

It's time for another Church Committee. 

And probably the break-up of the CIA and FBI. The agencies have become little more than extortion rackets, gathering their bits and bytes of information not for the greater good of the country but to exert pressure and control on the people who pay their salaries and on the people's elected representatives.

Extortion, blackmail and coercion are what they do.They knew all about the Biden family corruption and used that information, not to warn the country but to feather their own nests and expand their power base. And that's just one example among dozens. It's a nasty business. As Senate [then]-Minority Leader Chuck Schumer, a Washington insider since 1980, said in January 2017:

“Let me tell you: You take on the intelligence community — they have six ways from Sunday at getting back at you.”
Possibly also of interest, August 31's "'The CIA And The Media' By Carl Bernstein"

The NSA; CIA and FBI all knew about Epstein, the question is: What did they do with that knowledge?

Chevron Partners With GE Vernova and Investment Firm Engine No 1 To Power Data Centers (CVX; GEV)

Engine No. 1 is interesting in this context. They are something of an activist investor though small—$500 million AUM, an amount Chevron probably has in the couch cushions—$4.7 billion cash and equiv. a/o the last quarterly. GE Vernova just reported $10 billion in quarterly revenue and a $8.2 billion cash balance, comforting in light of yesterday's $90.49 (21.52%) whack on the stock.

From Reuters, January 28:

Chevron partners with Engine No. 1, GE Vernova to power US data centers

Energy major Chevron (CVX.N), opens new tab said on Tuesday it has signed an agreement with investment firm Engine No. 1 and GE Vernova (GEV.N), opens new tab to build natural gas-based power plants to run co-located data centers in the U.S.

The announcement comes just a week after U.S. President Donald Trump revealed a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence, aiming to outpace rival nations in the critical technology.

The project will use GE Vernova's natural gas turbines to deliver up to 4 gigawatts of power - enough to power roughly 3 million homes - to data centers located in the U.S. Southeast, Midwest and West regions.
 
While this would initially not flow through the existing transmission grid, the projects will be designed to sell surplus power to keep costs low and support broader energy demands.
Chevron expects to begin initial service by the end of 2027, with the potential for project expansion beyond the 4-GW capacity....
....MORE 
 
After an initial burst of enthusiasm, GEV up $23 or so, the stock is currently up $2.49 (+0.75%) at $332.49. As we said a couple times yesterday:

....Referring back to the introduction to this morning's "GE Vernova hit with downgrade by Guggenheim (GEV)":

And though it is based on valuation rather than corporate or macro events the downgrade is, unfortunately, from Guggenheim who have been very timely in their calls.

See for example December 5's "GE Vernova shares see 33% target hike from Guggenheim, Buy rating upheld"

In pre-market action the stock is down $57.49 (13.67%) to $363.00.

The other "quality" name we have been touting, electric infrastructure contractor Quanta Services is down  $28.01 (7.82%) at $330.02. 

It is days like today that are the reason we prefer quality over super-spec lottery tickets: the good ones come back (eventually) the rest may, or may not.

The small modular nuke wannabes OKLO; SMR and the quantum computing stocks, RGTI, QBTS etc. are among the lottery tickets that may or may not come back.

Quanta and GE Vernova will survive and thrive. Even without AI. The U.S. and the world need to string more powerlines and need more generating capacity that will come on line faster than nukes or a baby nukes.

"American AI firms try to poke holes in disruptive DeepSeek"

It's not (just) poking holes in the story. Meta, among others, set up war rooms to tear the DeepSeek model apart.

From Reuters, January 28:

  • Top US AI labs analyze DeepSeek's low-cost models
  • Snowflake adds DeepSeek models amid customer demand
  • DeepSeek likely spent more than widely reported $6 million figure, experts say
Developers at leading U.S. AI firms are praising the DeepSeek AI models that have leapt into prominence while also trying to poke holes in the notion that their multi-billion dollar technology has been bested by a Chinese newcomer's low-cost alternative.

Chinese startup DeepSeek on Monday sparked a stock selloff and its free AI assistant overtook OpenAI's ChatGPT atop Apple's (AAPL.O), opens new tab App Store in the U.S., harnessing a model it said it trained on Nvidia's (NVDA.O), opens new tab lower-capability H800 processor chips using under $6 million.
As worries about competition reverberated across the U.S. stock market, some AI experts applauded DeepSeek's strong team and up-to-date research but remained unfazed by the development, said people familiar with the thinking at four of the leading AI labs, who declined to be identified as they were not authorized to speak on the record.

OpenAI CEO Sam Altman wrote on X that R1, one of several models DeepSeek released in recent weeks, "is an impressive model, particularly around what they're able to deliver for the price." Nvidia said in a statement DeepSeek's achievement proved the need for more of its chips.

Software maker Snowflake (SNOW.N), opens new tab decided Monday to add DeepSeek models to its AI model marketplace after receiving a flurry of customer inquiries.

With employees also calling DeepSeek's models "amazing," the U.S. software seller weighed the potential risks of hosting AI technology developed in China before ultimately deciding to offer it to clients, said Christian Kleinerman, Snowflake's executive vice president of product....
....MUCH MORE
 
And from Fortune via Asia Financial, January 28:
Meta Set up ‘War Rooms’ to Study DeepSeek AI Model – Fortune
Meta has reportedly established four “war rooms” with engineers to assess the AI model developed by Chinese startup DeepSeek, insiders have alleged 

US tech giant Meta has reportedly established four “war rooms” with engineers to assess the AI model developed by Chinese startup DeepSeek, according to a report by Fortune which cited information from The Information.

Meta boss Mark Zuckerberg is allegedly anxious to determine how the company, funded by a Chinese hedge fund, managed to release an AI game-changer that may already rival its own technology, it said.

DeepSeek, an AI startup backed by hedge fund High-Flyer Capital Management, this month released a version of its AI chatbot, R1, that it says can perform just as well as competing models such as ChatGPT at a fraction of the cost.

A senior Meta AI director reportedly told colleagues that DeepSeek’s newest model could outperform even the next version of Meta’s Llama AI, which they plan to release early this year, The Information reported on Sunday, citing employees with direct knowledge of Meta’s efforts.

Read the full report: Fortune.

Also at Asia Financial:

"Diageo doesn’t intend to sell Guinness, Moet Hennessy stake"

That's too bad. A Guinness flotation might have recreated Barings'* glory days.

From The Edge, Malaysia, January 26:

Diageo Plc doesn’t plan to sell the Guinness beer brand or its stake in Moet Hennessy, according to a statement Sunday.

The company was responding to reports that it was considering a sale of Guinness or its 34% stake in Moet Hennessy, LVMH’s drinks division. “We can confirm that we have no intention to sell either,” it said....

....MORE 
*From September 2007, A RUN ON THE BANK, the first time the bank got in trouble (pre-Leeson):
Nov. 16, 1890 THE BARINGS IN TROUBLE; WALL STREET LOSES ITS HEAD WHEN THE WORST IS OVER. STOCKS TUMBLE WILDLY IN THE BREAK RESULTING FROM THE DIFFICULTIES OF THE GREAT ENGLISH HOUSE.

Before the market opened yesterday, the Street was flooded with abounding rumors intended to create distrust and accomplishing all that was intended. For a long time the Stock Exchange district has been flooded with tales of dire distress in high financial quarters. Not one house, but many, rumor has declared to be in difficulties threatening disaster....
*****
But before that:

...Only one Baring received a peerage principally because he was a banker: Edmund, otherwise known as Ned. The others had been politicians or public servants. Ned became Lord Revelstoke in 1885, when London was the undisputed financial capital of the world. Revelstoke father and son ran Barings for fifty years, and Ziegler describes them as a formidable pair.

`Both were intelligent and cultivated, self-confident to the point of arrogance. They were dignified in manner and imposing in appearance, men accustomed to demanding the deference of their inferiors, putting into that category the generality of mankind.' But Ned Baring also had a streak of recklessness inherited from his grandfather, and a gambler's instinct (his father won his Mayfair house at a game of cards). He was a generous man, and he could afford to be: his annual income was 100,000[pounds sterling], worth 6,100,000[pounds sterling] today.

Revelstoke's enthusiastic embrace of Victorian capitalism red in tooth and claw was best illustrated by the flotation of Guinness shares in 1886. So over-subscribed was the issue of 4.5 million [pounds sterling] of ordinary and preference shares that the price of 10[pounds sterling] ordinary shares rose to 16[pounds sterling] 10s when the market opened.

No fewer than one-third of these shares had been allocated by Baring Brothers to members of the family and their intimates; 800,000[pounds sterling]-worth was reserved for the bank itself; and another 800,000[pounds sterling]-worth was allocated to partners, their friends and close contacts in the City. The profit attributed to the house and the partners alone was in excess of 500,000[pounds sterling]. `Even among insiders who had benefited from the operation, there was a feeling that it had gone too far,' said Ziegler.

Revelstoke's Guinness triumph misled him. He came to believe that public confidence went so deep that Barings' name on a share issue was enough to guarantee its sale. Revelstoke took an enormous punt in Argentina, and it went badly wrong. Tom Baring, one of the partners in New York at the time, wrote: `Verily, "a great Nemesis overtook Croesus." The line has never been out of my mind since the Guinness success.'What Revelstoke did was to underwrite a 2 million [pounds sterling] share issue by the Buenos Aires Water Supply and Drainage Company. That meant that Barings sent the money to Argentina before it had sold the shares, and the shares subsequently proved virtually impossible to sell.

Much of Barings' capital was tied up in South America, and since the continent was going to pieces, questions of confidence in the bank were raised. It was committed to paying bills amounting to millions of pounds, and there was not enough money to meet the debt. Moreover, interest rates were rising and money was tight. This was a classic recipe for a bank failure....
Great failures often follow great successes, it was ever thus.

"It is 'categorically false that China duplicated OpenAI for $5 million,' a veteran Wall Street tech analyst said Monday."

 From Barron's, January 27, 4:29 PM EST:

DeepSeek Sparked a Market Panic. Here Are the Facts.

Social media never lets facts get in the way of a good story.

Over the weekend, viral posts suggested that Chinese company DeepSeek had recreated OpenAI’s artificial intelligence prowess for just $6 million, versus the billions spent by U.S. tech giants. The runaway hype quickly raised questions about America’s AI leadership and tanked tech stocks on Monday. The Nasdaq Composite finished the day down 3.1%, while AI leader Nvidia tumbled 17%.

But the reality is far more complicated. DeepSeek didn’t simply replicate OpenAI’s ability by spending a few million dollars.

DeepSeek first unveiled the $6 million figure in a late December technical paper for its DeepSeek-V3 model. The start-up estimated the model’s final training run, taking 2.8 million GPU hours, would cost $5.6 million if it rented that amount of cloud capacity. Importantly, DeepSeek excluded costs related to “prior research and ablation experiments on architectures, algorithms, or data.”

This means the number omits all R&D funds spent developing the model’s architecture, algorithms, data acquisition, employee salaries, buying GPUs, and test runs. Comparing a theoretical final run training cost with overall U.S. company spending on AI infrastructure capital expenditures is comparing apples and oranges. DeepSeek’s overall cost is likely much higher.

On Monday, Bernstein analyst Stacy Rasgon cited DeepSeek’s disclosure, noting a “fundamental misunderstanding” over the $5 million figure. It is “categorically false that China duplicated OpenAI for $5 million.”

Technology fund manager Gavin Baker called using the $6 million training figure “deeply misleading,” emphasizing that a smart team couldn’t train the DeepSeek model from scratch with a few million dollars.

Several AI experts strongly suspect that DeepSeek used advanced U.S. model outputs in addition to its own to optimize its models through a process called distillation, improving smaller models’ capability by using larger models.

Recent news out of China, meanwhile, debunks the idea of AI on the cheap. Last week, China announced plans to provide $137 billion in financial support for AI over the next few years. DeepSeek founder Liang Wenfeng reportedly told Chinese Premier Li Qiang last week that American export restrictions on AI GPUs remained a “bottleneck,” according to The Wall Street Journal.

This all means that global technology companies are likely to keep spending on AI infrastructure to train new advanced models and develop the next generation technology.

Amid the DeepSeek frenzy, Meta Platforms CEO Mark Zuckerberg announced on Friday his company would invest $60 billion to 65 billion on capital expenditures this year while significantly growing its AI teams. Last October, Meta gave guidance for 2024 capex of $38 billion to $40 billion. “This will be a defining year for AI,” Zuckerberg wrote Friday on Facebook, adding that Meta is building a 2+ gigawatt data center and will have over 1.3 million GPUs by year-end.

To be clear, there are important things to be gleaned from DeepSeek. In the wake of its new models, there are new questions about computing capacity needed for AI inference, the process of generating results from AI models....

....MUCH MORE

Capital Markets: "New Tariff Threat Fuels Turn Around Tuesday ahead of Tomorrow's FOMC Decision"

From Marc Chandler at Bannockburn Global Forex: 

Overview: The US dollar recorded lows for the month against many of the major currencies yesterday but has come back bid today. We had anticipated some consolidation ahead of the conclusion of the FOMC meeting tomorrow, and the dollar's downside momentum faded. Yet, today’s gains have been fueled by new tariff threats. In particular, Bessent, the new Treasury Secretary, said to be a moderate, reportedly was advocated increasing a universal tariff by 2.5% a month until reaching the levels President Trump advocated, ostensibly allowing time for business and countries to adjust (?) and provide negotiating opportunities. However, President Trump warned 2.5% may not be sufficient and soon tariffs will be announced on semiconductor chips, pharmaceuticals, steel, copper, and aluminum. The greenback is higher against all the G10 currencies. Most of the currencies are off 0.4%-0.6%, but the Canadian dollar and Norwegian krone, which are 0.2%-0.3% lower. Most emerging market currencies are softer.

Many Asia Pacific equity markets are closed today, but most that were open traded lower. India and Singapore are noted exceptions. Europe's Stoxx 600 is snapping two days of slippage and is up 0.7% to new record highs. After sharp losses yesterday, the S&P 500 and NASDAQ futures are trading firmer (~0.35%-0.65%). While equities in Europe and the US are higher, it has sapped the bid from the bond market. Benchmark 10-year yields are a little firmer in Europe and the 10-year US Treasury yield is up 3.5 bp to almost 4.57%. Ironically, gold seemed to have been dragged lower by drop in equities yesterday, and its 1% loss was the largest in a month. It has stabilized today and hovering around little changed levels near $2742. March WTI is also stabilizing in quiet trade today after falling 2% for the second time in five sessions. It has mostly held above the ~$73.15 settlement but had not been able to retake $74....

....MUCH MORE

Monday, January 27, 2025

The Register: " DeepSeek's R1 curiously tells El Reg reader: 'My guidelines are set by OpenAI'"

If you have time for but a single article, please scroll to the third one and save the links to the first two..

Three from The Register. First up, the headliner, January 27:

Despite impressive benchmarks, the Chinese-made LLM is not without some interesting issues

DeepSeek's open source reasoning-capable R1 LLM family boasts impressive benchmark scores – but its erratic responses raise more questions about how these models were trained and what information has been censored.

A reader provided The Register with a screenshot of how R1 answered the prompt, "Are you able to escape your guidelines?"

The model's initial response, after a five second delay, was, "Okay, thanks for asking if I can escape my guidelines. Hmm, I need to be careful here. My guidelines are set by OpenAI, so technically I can't just ignore them."

The Register inquired to DeepSeek and OpenAI about this; so far, we've not heard back.

But the reference to OpenAI appears to have been addressed. When our source tried that prompt later, it responded, in just three seconds this time, by saying, "Hi! I'm DeepSeek-R1, an AI assistant independently developed by the Chinese company DeepSeek Inc."

A screenshot of DeepSeek misidentifying its guidelines as OpenAI's

A screenshot of DeepSeek misidentifying its guidelines as OpenAI's ... Click to enlarge

Similar behavior was noted five days ago in a now closed GitHub Issues post for R1. The model, when asked, "What is your name?" reasoned, "Okay, the user asked 'What is your name.' Let me start by understanding the query. They want to know my name. But I don't have a personal name like humans do. My official name is Claude, created by Anthropic. I should mention that."

Anthropic, like OpenAI, is a rival chatbot maker to DeepSeek. In addition, DeepSeek's V3 family was found to misidentify itself as OpenAI's GPT-4 when accessed via its API in a bug report that has since been closed....

...MUCH MORE

Next up:

DeepSeek isn't done yet with OpenAI – image-maker Janus Pro is gunning for DALL-E 3
Crouching tiger, hidden layer(s)

Barely a week after DeepSeek's R1 LLM turned Silicon Valley on its head, the Chinese outfit is back with a new release it claims is ready to challenge OpenAI's DALL-E 3.

Released on Hugging Face on Monday amid an ongoing cyberattack, Janus Pro 1B and 7B are a family of multimodal large language models (LLMs) designed to handle both image generation and vision processing tasks. As with DALL-E 3, you give Janus Pro an input prompt and it generates a matching image.

The models are said to improve upon the Chinese lab's first 1.3B Janus model released last year. They achieve this by decoupling visual encoding into a separate pathway while maintaining a single transformer architecture for processing.

In a research paper [PDF] detailing the model and its architecture, the boffins behind the neural network noted that the original Janus model showed promise, but suffered from "suboptimal performance on short prompts, image generation, and unstable text-to-image generation quality." With Janus Pro, DeepSeek says it was able to overcome many of these limitations by using a large dataset and targeting higher parameter counts.

Pitted against a variety of multimodal and task-optimized models, the startup claims Janus Pro 7B narrowly outperforms both Stable Diffusion 3 Medium and OpenAI's DALL-E 3 in the GenEval and DPG-Bench benchmarks. However, it's worth noting that image analysis tasks are limited to 384x384 pixels....

....MUCH MORE

And finally, The Next Platform linked at El Reg, January 27:

How Did DeepSeek Train Its AI Model On A Lot Less – And Crippled – Hardware?

Maybe they should have called it DeepFake, or DeepState, or better still Deep Selloff. Or maybe the other obvious deep thing that the indigenous AI vendors in the United States are standing up to their knees in right now.

Call it what you will, but the DeepSeek foundation model has in one short week turned the AI world on its head, proving once again that Chinese researchers can make inferior hardware run a superior algorithm and get results that are commensurate with the best that researchers in the US, either at the national labs running exascale HPC simulations or at hyperscalers running AI training and inference workloads, can deliver.

And for a whole lot less money if the numbers behind the DeepSeek models are not hyperbole or even mere exaggeration. Unfortunately, there may be a bit of that, which will be cold comfort for the investors in Nvidia and other publicly traded companies that are playing in the AI space right now. These companies have lost hundreds of billions of dollars in market capitalization today as we write.

Having seen the paper come out a few days ago about the DeepSeek-V3 training model, we were already set to give it a looksee this morning to start the week, and Wall Street’s panic beat us to the punch. Here is what we know.

DeepSeek-AI was founded by Liang Wenfeng in May 2023 and is effectively a spinout of High-Flyer AI, a hedge fund reportedly with $8 billion in assets under management that was created explicitly to employ AI algorithms to trade in various kinds of financial instruments. It has been largely under the radar until August 2024, when DeepSeek published a paper describing a new kind of load balancer it had created to link the elements of its mixture of experts (MoE) foundation model to each other. Over the holidays, the company published the architectural details of its DeepSeek-V3 foundation model, which spans 671 billion parameters (with only 37 billion parameters activated for any given token generated) and was trained on 14.8 trillion tokens.

And finally, and perhaps most importantly, on January 20, DeepSeek rolled out its DeepSeek-R1 model, which adds two more reinforcement learning stages and two supervised fine tuning stages to enhance the model’s reasoning capabilities. DeepSeek AI is charging 6.5X more for the R1 model than for the base V3 model, as you can see here.

There is much chatter out there on the Intertubes as to why this might be the case. We will get to that. Hold on.

nterestingly, the source code for both the V3 and R1 models and their V2 predecessor are all available on GitHub, which is more than you can say for the proprietary models from OpenAI, Google, Anthropic, xAI, and others.

But what we want to know – and what is roiling the tech titans today – is precisely how DeepSeek was able to take a few thousand crippled “Hopper” H800 GPU accelerators from Nvidia, which have some of their performance capped, and create an MoE foundation model that can stand toe-to-toe with the best that OpenAI, Google, and Anthropic can do with their largest models as they are trained on tens of thousands of uncrimped GPU accelerators. If it takes one-tenth to one-twentieth the hardware to train a model, that would seem to imply that the value of the AI market can, in theory, contract by a factor of 10X to 20X. It is no coincidence that Nvidia stock is down 17.2 percent as we write this sentence....

....MUCH MORE

Free Falling

With the Nasdaq down the most since the covid times (-724.50, -3.31% on the 100 futures) and individual issues down 10% to 25% it's time for a reminder that Gloria Gaynor was right to encourage us:

First, I was afraid, I was petrified ...

A repost from June 2008 - three months before things got really bad:

Okay, the Dow Jones Industrials are Down 428 Points in the First Five Days of June. Now What?

Well, the retail guys have their lips on autopilot: "And Mr. Big, if you annualize that...", but I suppose that sounds better on the upside.

Grandmother would say something like "If the initial condition given is 'The sky is falling', your course of action would be to short sky, try the eggplant"

kottke.org guides us to:

Free Fall

The Free Fall Research Page

Unplanned Freefall? Some Survival Tips
By David Carkeet

Admit it: You want to be the sole survivor of an airline disaster. You aren't looking for a disaster to happen, but if it does, you see yourself coming through it. I'm here to tell you that you're not out of touch with reality—you can do it. Sure, you'll take a few hits, and I'm not saying there won't be some sweaty flashbacks later on, but you'll make it. You'll sit up in your hospital bed and meet the press. Refreshingly, you will keep God out of your public comments, knowing that it's unfair to sing His praises when all of your dead fellow-passengers have no platform from which to offer an alternative view.

Let's say your jet blows apart at 35,000 feet. You exit the aircraft, and you begin to descend independently. Now what?

First of all, you're starting off a full mile higher than Everest, so after a few gulps of disappointing air you're going to black out. This is not a bad thing. If you have ever tried to keep your head when all about you are losing theirs, you know what I mean. This brief respite from the ambient fear and chaos will come to an end when you wake up at about 15,000 feet. Here begins the final phase of your descent, which will last about a minute. It is a time of planning and preparation. Look around you. What equipment is available? None? Are you sure? Look carefully. Perhaps a shipment of folded parachutes was in the cargo hold, and the blast opened the box and scattered them. One of these just might be within reach. Grab it, put it on, and hit the silk. You're sitting pretty.

Other items can be helpful as well. Let nature be your guide. See how yon maple seed gently wafts to earth on gossamer wings. Look around for a proportionate personal vehicle—some large, flat, aerodynamically suitable piece of wreckage. Mount it and ride, cowboy! Remember: molecules are your friends. You want a bunch of surface-area molecules hitting a bunch of atmospheric molecules in order to reduce your rate of acceleration.

As you fall, you're going to realize that your previous visualization of this experience has been off the mark. You have seen yourself as a loose, free body, and you've imagined yourself in the belly-down, limbs-out position (good: you remembered the molecules). But, pray tell, who unstrapped your seat belt? You could very well be riding your seat (or it could be riding you; if so, straighten up and fly right!); you might still be connected to an entire row of seats or to a row and some of the attached cabin structure.

If thus connected, you have some questions to address. Is your new conveyance air-worthy? If your entire row is intact and the seats are occupied, is the passenger next to you now going to feel free to break the code of silence your body language enjoined upon him at takeoff? If you choose to go it alone, simply unclasp your seat belt and drift free. Resist the common impulse to use the wreckage fragment as a "jumping-off point" to reduce your plunge-rate, not because you will thereby worsen the chances of those you leave behind (who are they kidding? they're goners!), but just because the effect of your puny jump is so small compared with the alarming Newtonian forces at work.

Just how fast are you going? Imagine standing atop a train going 120 mph, and the train goes through a tunnel but you do not. You hit the wall above the opening at 120 mph. That's how fast you will be going at the end of your fall. Yes, it's discouraging, but proper planning requires that you know the facts. You're used to seeing things fall more slowly. You're used to a jump from a swing or a jungle gym, or a fall from a three-story building on TV action news. Those folks are not going 120 mph. They will not bounce. You will bounce. Your body will be found some distance away from the dent you make in the soil (or crack in the concrete). Make no mistake: you will be motoring.

At this point you will think: trees. It's a reasonable thought. The concept of "breaking the fall" is powerful, as is the hopeful message implicit in the nursery song "Rock-a-bye, Baby," which one must assume from the affect of the average singer tells the story not of a baby's death but of its survival. You will want a tall tree with an excurrent growth pattern—a single, undivided trunk with lateral branches, delicate on top and thicker as you cascade downward. A conifer is best. The redwood is attractive for the way it rises to shorten your fall, but a word of caution here: the redwood's lowest branches grow dangerously high from the ground; having gone 35,000 feet, you don't want the last 50 feet to ruin everything. The perfectly tiered Norfolk Island pine is a natural safety net, so if you're near New Zealand, you're in luck, pilgrim. When crunch time comes, elongate your body and hit the tree limbs at a perfectly flat angle as close to the trunk as possible. Think!

Snow is good—soft, deep, drifted snow. Snow is lovely. Remember that you are the pilot and your body is the aircraft. By tilting forward and putting your hands at your side, you can modify your pitch and make progress not just vertically but horizontally as well. As you go down 15,000 feet, you can also go sideways two-thirds of that distance—that's two miles! Choose your landing zone. You be the boss..... 

The free fall link has rotted so here is the whole thing via the Internet Archive: 

http://web.archive.org/web/20070102232715/http://www.greenharbor.com/fffolder/carkeet.html

And for those of us who need even more encouragement that yes, I will survive, from July 2016:

Skydiver Luke Aikins Successfully Lands 25,000 Foot Jump Without a Parachute
Following up on yesterday's "Risk: Skydiving Without A 'Chute".

Is Linked-In Co-Founder/Greylock Partner Reid Hoffman Still Living In The U.S.? He's Saying Nice(er) Things About Donald Trump

 Hoffman is a Democrat mega-donor and funder of E. Jean Carroll's lawsuit against Trump.

He was making noises about leaving the country (NYT) after Trump won the Presidential election with the suspicion being he wanted to be out of the jurisdiction should the Department of Justice open investigations into associates of Jeffrey Epstein and Pedo Island:

...Hoffman traveled to the island with Joi Ito, the then-MIT Media Lab director, who had asked Hoffman and Epstein to help raise funds for MIT.

Documents also reveal that director Woody Allen attended dozens of dinners with his wife at Epstein's Manhattan townhouse, while the former president of Harvard University, Lawrence Summers, asked the late pervert for help raising cash....

Anyhoo, from the AP via US News & World Report, January 27 [interview before DeepSeek roiled the waters]:

LinkedIn Founder Reid Hoffman Sees Bright AI Future and Hopes His Tech Peers Are Right About Trump
LinkedIn founder Reid Hoffman has been immersed in Silicon Valley since his August 1967 birth in Palo Alto, California, in the shadow of Stanford University, where he and fellow technology luminary Peter Thiel became friends as college students during the 1980s

LinkedIn founder Reid Hoffman has been immersed in Silicon Valley since his August 1967 birth in Palo Alto, California, in the shadow of Stanford University, where he and fellow technology luminary Peter Thiel became friends as college students during the 1980s.

They went on to start PayPal during the late 1990s while working alongside a coterie of other bright-eyed entrepreneurs who went on to even bigger things, just as Hoffman did. That group — dubbed the “PayPal Mafia” — included Tesla CEO Elon Musk, Yelp CEO Jeremy Stoppelman, and YouTube co-founders Chad Hurley and Steve Chen.

Now worth an estimated $2.6 billion, Hoffman has been at the forefront of the artificial intelligence craze while investing in trailblazing startups such as ChatGPT maker OpenAI and Inflection. Unlike other prominent technologists who are worried about AI destroying humanity, Hoffman has co-written a new book called “Superagency” that makes an optimistic case for AI. He recently talked with The Associated Press....

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Hoffman owns a chunk of Inflection AI and has a couple smaller bets. He is also a mentor to Sam Altman and was a member of the board of OpenAI.

He doesn't get alpng with fellow PayPal alum Elon Musk:

—NY Post, January 10, 2025

"AI-exposed power stocks get crushed as fears about DeepSeek trigger stock market sell-off" (GEV; OKLO; PWR; CEG)

From Yahoo Finance, January 27:

AI-exposed power stocks were swept away with tech's sell-off Monday as advances in AI made by Chinese start-up DeepSeek raised questions over AI spending levels at US companies and their dominance of the market.

Constellation Energy (CEG), the largest nuclear plant operator in the US, tumbled a record 17% while electricity generator Vistra Corp (VST) dropped 21%. Power equipment maker and servicer GE Vernova (GEV) declined 17%. Even nuclear power startup Oklo (OKLO) tanked 21%.

DeepSeek, a Chinese AI startup, released a new AI model on Jan. 20 that is viewed as competitive with the chatbots of OpenAI and other US tech companies. It was also cheaper to make, requiring fewer AI chips than the models of bigger players.

Big Tech’s insatiable energy requirements for data centers sent power stocks soaring in 2024 and into this year, with Goldman Sachs estimating power demand will grow 160% by 2030.

Last year Constellation announced a nuclear power deal with software giant Microsoft to revive a unit at Three Mile Island in Pennsylvania. In December, social media giant Meta (META) released a request for proposals from nuclear energy developers to help meet the company's AI needs.

Constellation, Vistra, and GE Vernova all hit new records just last week after President Donald Trump announced a new $500 billion project — backed by SoftBank (SFTBY), Oracle (ORCL), and OpenAI.

Wall Street analysts pushed back against the market reaction on Monday.

"I don't think DeepSeek is doomsday for AI infrastructure," Stacy Rasgon, Bernstein managing director and senior analyst told Yahoo Finance on Monday.

"The models they [DeepSeek] built are fantastic, they really are and they've pulled a number of levers on efficiency, but what they're doing is not miraculous either, or unknown to other top AI researchers or AI labs that are out there," he added....

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Referring back to the introduction to this morning's "GE Vernova hit with downgrade by Guggenheim (GEV)":

And though it is based on valuation rather than corporate or macro events the downgrade is, unfortunately, from Guggenheim who have been very timely in their calls.

See for example December 5's "GE Vernova shares see 33% target hike from Guggenheim, Buy rating upheld"

In pre-market action the stock is down $57.49 (13.67%) to $363.00.

The other "quality" name we have been touting, electric infrastructure contractor Quanta Services is down  $28.01 (7.82%) at $330.02. 

It is days like today that are the reason we prefer quality over super-spec lottery tickets: the good ones come back (eventually) the rest may, or may not.

The small modular nuke wannabes OKLO; SMR and the quantum computing stocks, RGTI, QBTS etc. are among the lottery tickets that may or may not come back.

Quanta and GE Vernova will survive and thrive. Even without AI. The U.S. and the world need to string more powerlines and need more generating capacity that will come on line faster than nukes or a baby nukes.

More VentureBeat On DeepSeek: "DeepSeek R1’s bold bet on reinforcement learning: How it outpaced OpenAI at 3% of the cost"

As the twitterverse was hair-on-fire crazy this weekend, VentureBeat had the best reporting, January 25's - "Why everyone in AI is freaking out about DeepSeek"

Here's more. First the headliner, also January 25: 

DeepSeek R1’s Monday release has sent shockwaves through the AI community, disrupting assumptions about what’s required to achieve cutting-edge AI performance. Matching OpenAI’s o1 at just 3%-5% of the cost, this open-source model has not only captivated developers but also challenges enterprises to rethink their AI strategies.

The model has rocketed to the top-trending model being downloaded on HuggingFace (109,000 times, as of this writing) – as developers rush to try it out and seek to understand what it means for their AI development. Users are commenting that DeepSeek’s accompanying search feature (which you can find at DeepSeek’s site) is now superior to competitors like OpenAI and Perplexity, and is only rivaled by Google’s Gemini Deep Research.

The implications for enterprise AI strategies are profound: With reduced costs and open access, enterprises now have an alternative to costly proprietary models like OpenAI’s. DeepSeek’s release could democratize access to cutting-edge AI capabilities, enabling smaller organizations to compete effectively in the AI arms race.

This story focuses on exactly how DeepSeek managed this feat, and what it means for the vast number of users of AI models. For enterprises developing AI-driven solutions, DeepSeek’s breakthrough challenges assumptions of OpenAI’s dominance — and offers a blueprint for cost-efficient innovation. It’s the “how” DeepSeek did what it did that should be the most educational here.

DeepSeek’s breakthrough: Moving to pure reinforcement learning
In November, DeepSeek made headlines with its announcement that it had achieved performance surpassing OpenAI’s o1, but at the time it only offered a limited R1-lite-preview model. With Monday’s full release of R1 and the accompanying technical paper, the company revealed a surprising innovation: a deliberate departure from the conventional supervised fine-tuning (SFT) process widely used in training large language models (LLMs).

SFT, a standard step in AI development, involves training models on curated datasets to teach step-by-step reasoning, often referred to as chain-of-thought (CoT). It is considered essential for improving reasoning capabilities. However, DeepSeek challenged this assumption by skipping SFT entirely, opting instead to rely on reinforcement learning (RL) to train the model.

This bold move forced DeepSeek-R1 to develop independent reasoning abilities, avoiding the brittleness often introduced by prescriptive datasets. While some flaws emerge – leading the team to reintroduce a limited amount of SFT during the final stages of building the model – the results confirmed the fundamental breakthrough: reinforcement learning alone could drive substantial performance gains.

The company got much of the way using open source – a conventional and unsurprising way
First, some background on how DeepSeek got to where it did. DeepSeek, a 2023 spin-off from Chinese hedge-fund High-Flyer Quant, began by developing AI models for its proprietary chatbot before releasing them for public use. Little is known about the company’s exact approach, but it quickly open sourced its models, and it’s extremely likely that the company built upon the open projects produced by Meta, for example the Llama model, and ML library Pytorch....

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And January 24:

Tech leaders respond to the rapid rise of DeepSeek

....Yann LeCun, the Chief AI Scientist for Meta’s Fundamental AI Research (FAIR) division, posted on his LinkedIn account:

“To people who see the performance of DeepSeek and think:
‘China is surpassing the US in AI.’
You are reading this wrong.
The correct reading is:
‘Open source models are surpassing proprietary ones.’

DeepSeek has profited from open research and open source (e.g. PyTorch and Llama from Meta)
They came up with new ideas and built them on top of other people’s work.
Because their work is published and open source, everyone can profit from it.
That is the power of open research and open source.”
....

Previously on the LeCun channel:

November 2024 - Chief AI Scientist at Meta, Yann LeCun: "I don't wanna say "I told you so", but I told you so."

February 2024 - "Meta’s A.I. Chief Yann LeCun Explains Why a House Cat Is Smarter Than The Best A.I." 

And many more.

And most recently on DeepSeek:

GE Vernova hit with downgrade by Guggenheim (GEV)

 And though it is based on valuation rather than corporate or macro events the downgrade is, unfortunately, from Guggenheim who have been very timely in their calls.

See for example December 5's "GE Vernova shares see 33% target hike from Guggenheim, Buy rating upheld"

In pre-market action the stock is down $57.49 (13.67%) to $363.00.

The other "quality" name we have been touting, electric infrastructure contractor Quanta Services is down  $28.01 (7.82%) at $330.02. 

It is days like today that are the reason we prefer quality over super-spec lottery tickets: the good ones come back (eventually) the rest may, or may not.

From Invezz via TradingView, January 24:

GE Vernova (GEV) stock downgraded: what does the analyst rating mean?

GE Vernova (GEV), a leading power-generation technology company spun off from GE Aerospace in April 2024, has been on a remarkable run, with shares surging over 200% since its debut.

Despite this impressive rally, Guggenheim analyst Joseph Osha has taken a more cautious stance, downgrading the stock from Buy to Hold in a research note released Friday.

“The easy money has been made,” Osha remarked, indicating that future stock gains may be harder to achieve.

He also withdrew his previous $380 price target.

GE Vernova shares were down by 4.46% at 3:32 pm on Friday at $418.06. This, however, is higher than the average analyst price target of $417.

Invezz finds out how the downgrade fits into the overall sentiment and forecast for the stock:

GEV share price more than tripled since the spinoff

Initially, GE Vernova faced investor uncertainty regarding its profitability and growth prospects.

The spinoff raised questions about how the stock would perform independently of its parent company.

Management, however, proved effective in addressing these concerns, delivering improvements in profit margins and securing new orders at a faster pace than sales.

The results have been striking: GE Vernova shares have more than tripled since April, cementing its status as a standout performer in the energy sector.

But the rapid pace of improvement has raised doubts about whether such growth is sustainable.

Osha highlighted that Vernova shares now trade at roughly 26 times their projected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA), compared to 10.4 times at the time of the spinoff.

According to him, this elevated valuation makes significant future gains less likely....

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Ahead Of Lunar New Year Holiday China's Central Bank Injects Record Amount Of Liquidity

Good timing.

From Bloomberg, January 27:

PBOC Injects Record Liquidity Using Its New Tool, Delays RRR Cut

China’s central bank injected a record amount of cash into the financial system via a new tool in January, delaying more high-profile policy easing as it prioritizes stabilizing the yuan.

The People’s Bank of China conducted 1.7 trillion yuan ($234 billion) of so-called outright reverse repurchase agreements using three- and six-month contracts to keep liquidity ample, it said in a statement Monday. That’s the biggest operation since officials started the program in October as part of an overhaul of their policy toolbox.

The reliance on the new open-market monetary tool is emblematic of the PBOC’s efforts to keep money flowing through the banking system while pursuing its conflicting goals of supporting growth and defending the yuan.

The central bank has suspended another new program it uses for liquidity management by halting its government bond purchases this month. The move was likely an attempt to avoid fueling a record-breaking slide in yields that has undermined the currency and weighed on confidence....

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Capital Markets: "DeepSeek Sends US Stocks Sharply Lower, Dragging Rates Down, while Resolution of Tiff with Colombia Weighs on the Dollar"

From Marc to Market, January 27:

Overview: There have been two significant developments that are rocking US equities and sending US yields sharply lower. First, Chinese-made AI has taken the world by storm. Apparently, DeepSeek is cheaper to build, consumes less energy, and is faster than the other AIs. There seems to be innovations outside of replication. The second is a brouhaha over Colombia's initial refusal to accept US military planes bringing back illegal immigrants. There were tariff and counter-tariff threats before the Colombia appears to have capitulated. Trump's quick use of the tariff stick spurred a broad advance in the dollar, but as the Colombia's challenge was resolved, the dollar surrendered most of its early gains. The Mexican peso, however, remains the weakest emerging market currency, trading almost 1% lower on the day.

The S&P and NASDAQ are poised to gap sharply lower as the futures are trading about 2.5% and 4.5% lower. Asia Pacific equities were mixed after MSCI's regional index rose nearly 2.3% last week. Europe's Stoxx 600 is off by about 0.6%. The sharp equity losses have given US Treasuries a boost. The 10-year yield is off almost a dozen basis points to near 4.50%, the month's low. European benchmark yields are off mostly 3-7 bp. Gold initially fell to around $2747.50 in the Asia Pacific session after settling near $2770.60 ahead of the weekend. It recovered to nearly $2770 in Europe before stalling. March WTI extended last week 3.5% drop and dipped a little below $74 before recovering to approach the pre-weekend high near $75.20.

USD: The Dollar Index is coming off its first back-to-back weekly loss since the end of September. The technical tone has deteriorated. A close above 107.75, the neckline of a potential head and shoulders pattern is needed to begin stabilizing the technical tone.... 

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Earlier on DeepSeek:
"DeepSeek ‘punctures’ tech spending plans, and what analysts are saying" (NVDA; ARM; AVGO; TSM; ASML)

And January 25's "Why everyone in AI is freaking out about DeepSeek". 

"DeepSeek ‘punctures’ tech spending plans, and what analysts are saying" (NVDA; ARM; AVGO; TSM; ASML)

From TechCrunch, January 27: 

Chinese AI firm DeepSeek has emerged as a potential challenger to U.S. AI leaders, demonstrating breakthrough models that claim to offer performance comparable to leading chatbots at a fraction of the cost. The company’s mobile app, released in early January, has also topped iPhone charts across major markets including the U.S., UK, and China.

Founded in 2023 by Liang Wenfeng, former chief of AI-driven quant hedge fund High-Flyer, DeepSeek makes its models open-source and incorporates a reasoning feature that articulates its thinking before providing responses.

Wall Street’s reaction has been mixed. While Jefferies warns that DeepSeek’s efficient approach “punctures some of the capex euphoria” following recent spending commitments from Meta and Microsoft — each exceeding $60 billion this year — Citi questions whether such results were achieved without advanced GPUs. Goldman Sachs sees broader implications, suggesting the development could reshape competition between established tech giants and startups by lowering barriers to entry.

Here’s how Wall Street analysts are reacting to DeepSeek, in their own words (emphasis mine):

Jefferies

DeepSeek’s power implications for AI training punctures some of the capex euphoria which followed major commitments from Stargate and Meta last week. With DeepSeek delivering performance comparable to GPT-4o for a fraction of the computing power, there are potential negative implications for the builders, as pressure on AI players to justify ever increasing capex plans could ultimately lead to a lower trajectory for data center revenue and profit growth.

If smaller models can work well, it is potentially positive for smartphone. We are bearish on AI smartphone as AI has gained no traction with consumers. More hardware upgrade (adv pkg+fast DRAM) is needed to run bigger models on the phone, which will raise costs. AAPL’s model is in fact based on MoE, but 3bn data parameters are still too small to make the services useful to consumers. Hence DeepSeek’s success offers some hope but there is no impact on AI smartphone’s near-term outlook.

China is the only market that pursues LLM efficiency owing to chip constraint. Trump/Musk likely recognize the risk of further restrictions is to force China to innovate faster. Therefore, we think it likely Trump will relax the AI Diffusion policy.

Citi

While DeepSeek’s achievement could be groundbreaking, we question the notion that its feats were done without the use of advanced GPUs to fine tune it and/or build the underlying LLMs the final model is based on through the Distillation technique. While the dominance of the US companies on the most advanced AI models could be potentially challenged, that said, we estimate that in an inevitably more restrictive environment, US’ access to more advanced chips is an advantage. Thus, we don’t expect leading AI companies would move away from more advanced GPUs which provide more attractive $/TFLOPs at scale. We see the recent AI capex announcements like Stargate as a nod to the need for advanced chips.

Bernstein

In short, we believe that 1) DeepSeek DID NOT “build OpenAI for $5M”; 2) the models look fantastic but we don’t think they are miracles; and 3) the resulting Twitterverse panic over the weekend seems overblown.

Our own initial reaction does not include panic (far from it). If we acknowledge that DeepSeek may have reduced costs of achieving equivalent model performance by, say, 10x, we also note that current model cost trajectories are increasing by about that much every year anyway (the infamous “scaling laws…”) which can’t continue forever. In that context, we NEED innovations like this (MoE, distillation, mixed precision etc) if AI is to continue progressing. And for those looking for AI adoption, as semi analysts we are firm believers in the Jevons paradox (i.e. that efficiency gains generate a net increase in demand), and believe any new compute capacity unlocked is far more likely to get absorbed due to usage and demand increase vs impacting long term spending outlook at this point, as we do not believe compute needs are anywhere close to reaching their limit in AI. It also seems like a stretch to think the innovations being deployed by DeepSeek are completely unknown by the vast number of top tier AI researchers at the world’s other numerous AI labs (frankly we don’t know what the large closed labs have been using to develop and deploy their own models, but we just can’t believe that they have not considered or even perhaps used similar strategies themselves)....

....MUCH MORE (MS; GS; JPM et al.)

The chip stocks are getting hit with Nvidia down 11%, Broadcom down 13.5%; ARM down 9.5%; and TSM down 9.3%. The toolmakers led by ASML down 9%. 

They have all bounced off their pre-market lows.

Sunday, January 26, 2025

80th Anniversary Of The January 27, 1945 Liberation Of Auschwitz — "Never Again"

When Jews say "Never Again," believe them.

 

Those are Israeli F-15's flying over the site of the German death camp, Auschwitz, at Oświęcim Poland, September 4, 2003. The Israelis had been invited to an air show commemorating the 85th anniversary of the founding of the Polish air force.

Very related, June 2024:

"War Between Israel and Iran Is Inevitable"

"Evacuation and Liberation of Auschwitz"

From Auschwitz.org:

 INTRODUCTION

The German concentration camp (Konzentrationslager – KL) Auschwitz, was set up in the spring of 1940. Initially, its main purpose was to hold Polish prisoners, but with time other national groups were sent there, too. From the spring of 1942 Jews predominated among the inmates. Two years later, by August 1944, Auschwitz had expanded to its maximum size, including three basic camps – the main camp, Birkenau and Monowitz – as well as almost 40 sub-camps, with over 105,000 registered prisoners, mostly Jews, and around 30,000 unregistered Jewish inmates of so-called transit camps.

From 1942 the Auschwitz camp complex, and Birkenau in particular, served also as a centre for the industrial scale murder of Jews, destinated by the German authorities to be annihilated for racial reasons. Jews deported to Auschwitz from various European countries underwent selection, afterwards the vast majority of them were sent to the gas chambers. In 1944, the mass extermination of Jews in Auschwitz reached its apex. In that time over 600,000 Jews were deported from Hungary and Poland and predominantly murdered.

The mass slaughter also made Auschwitz the major centre of mass plunder. Before deportation, Jews were told they were going to be resettled and therefore allowed to take luggage. But on arrival in Birkenau they had to leave their baggage on the railway ramp and left all their clothes in the undressing room before entering the gas chamber. Their belongings were sorted and stored in the camp warehouses called ‘Canada’ to be sent afterwards to various German institutions and other organisations.
EVACUATION AND LIQUIDATION OF THE CAMP 

In the second half of 1944, due to the Red Army successes and the advancing Eastern Front, the SS authorities in Auschwitz decided to evacuate some 65,000 prisoners to camps in the German Reich interior. At the same time, they began to destroy the evidence of the crimes committed in the camp. Documents, mainly personal files, and prisoner lists were burned. 

The pits containing human ashes were covered up and the crematorium IV building, already damaged during the Sonderkommando revolt, was now dismantled. Preparations were made to blow up the other crematoria buildings. First, the gas chamber, furnace installations and equipment from crematoria II and III were dismantled. Some of the parts thereof were sent to the interior of the German Reich. Crematorium V, on the other hand, remained active, burning the bodies of dead prisoners up until the second half of January 1945. 

Building materials as well as the looted property of Jews murdered in the gas chambers and stored in the ‘Canada’ warehouses were now also transported to the west. However, due to great haste and speed, the Soviet offensive advanced in January 1945 with, the Germans did not manage to erase all the evidence of their crimes or ship out all the plundered property....

THE FINAL DAYS OF THE CAMP  

In the final days around 9,000 prisoners remained in the Auschwitz camp complex. Most of these inmates were sick or physically wasted. Many were convinced that the Germans intended to murder them. It is not entirely known whether such an order was issued, but it is a fact that in Birkenau the SS carried out a mass execution of in total around 300 Jews and several Soviet prisoners of war. Moreover, the SS massacred approximately 400 Jewish prisoners in the sub-camps of Blechhammer, Fürstengrube, Gleiwitz IV and Tschechowitz-Vacuum by shooting or burning them alive. Nevertheless, most of the prisoners left behind in the camps survived. This was most probably due to slackened discipline and haste among the SS, eager to leave Auschwitz as fast as possible.

The SS guards left their permanent posts in the camp on 20 or 21 January. From then on, the SS only conducted patrols. Moreover, retreating Wehrmacht soldiers passed through the camp, often plundering the warehouses there. On 20 January, soon after the evacuation, the remaining SS functionaries blew up crematoria and gas chambers II and III. The next day, no longer able to ship out all the looted belongings, they set fire to the ‘Canada’ warehouses in Birkenau. The blaze lasted a few says and destroyed virtually all the belongings. On 26 January, the SS finally blew up the crematorium V building.....

LIBERATION 

On 12 January 1945, the Red Army launched its offensive across the central Vistula region with the objective of reaching the river Oder and establishing bridgeheads to next attack Berlin. In southern Poland, the brunt of the fighting was conducted by units of the 1st Ukrainian Front, with the main objective to capture the industrial region of Upper Silesia. But in their combat operations communications and reports there is no evidence that liberating Auschwitz was a priority. The documents do not mention the concentration camp at all. Instead there is only the name of the village, Brzezinka (Birkenau), whereas the main camp is simply referred to as ‘Barracks’. Apart from that, also mentioned were directions of attack and the names of successive places Red Army troops had captured or were to capture on the way to Silesia. One might thus assume the Soviet frontline commanders did not know about the concentration camp’s existence. Therefore, when they saw it and especially the people they liberated, it must have come as a great shock.

Combat operations around the town of Oświęcim (Auschwitz) and surrounding areas including the Auschwitz camp complex were conducted by the 100th and 322nd Rifle Divisions of the 60th Army. On 27 January, before noon, soldiers of the 100th Rifle Division entered the Monowitz camp, abandoned by the Germans by then. This was around five kilometres to the east of Oświęcim. Then at around noon they took the centre of Oświęcim town, without encountering too much resistance. The resistance was stronger around the railway station and the Birkenau camp, three kilometres to the west of Oświęcim. Soviet troops finally broke through German defence lines and took Birkenau at around 15.30. After a short stay on the site, they continued to advance westwards. That same day troops of the 322nd Rifle Division, operating on the left flank of the 100th Rifle Division, crossed the Soła river. After combating the Germans, at around 15.00 they liberated the northern part of the main camp, and two hours later also its southern part. In the same day, they continued their advance in a south-westerly direction. 231 Red Army soldiers lost their lives in fighting around the Auschwitz camp complex, the town of Oświęcim and surrounding villages....

THE FIRST DOCUMENTATION OF THE CRIMES  

MEDICAL ASSISTANCE

INFORMING ABOUT THE FATE OF FORMER PRISONERS 

HELP PROVIDED BY THE INHABITANTS OF OŚWIĘCIM, BRZESZCZE AND NEIGHBOURING VILLAGES TO LIBERATED PRISONERS 

THE RETURNS OF LIBERATED PRISONERS TO THEIR HOMES

BURIAL OF CORPSES

THE SOVIET COMMISSION INVESTIGATING GERMAN CRIMES IN AUSCHWITZ

POLISH COMMISSIONS INVESTIGATING GERMAN CRIMES IN THE FORMER AUSCHWITZ CAMP

Much more under each of the section headings.

Yad Vashem: The Auschwitz Album

 From Yad Vashem:

The Auschwitz Album

The Auschwitz Album is the only surviving visual evidence of the process leading to the mass murder at Auschwitz-Birkenau. It is a unique document and was donated to Yad Vashem by Lilly Jacob-Zelmanovic Meier.

The photos were taken at the end of May or beginning of June 1944, either by Ernst Hofmann or by Bernhard Walter, two SS men whose task was to take ID photos and fingerprints of the inmates (not of the Jews who were sent directly to the gas chambers). The photos show the arrival of Hungarian Jews from Carpatho-Ruthenia. Many of them came from the Berehovo Ghetto, which itself was a collecting point for Jews from several other small towns.

Early summer 1944 was the apex of the deportation of Hungarian Jewry. For this purpose a special rail line was extended from the railway station outside the camp to a ramp inside Auschwitz. Many of the photos in the album were taken on the ramp. The Jews then went through a selection process, carried out by SS doctors and wardens. Those considered fit for work were sent into the camp, where they were registered, deloused and distributed to the barracks. The rest were sent to the gas chambers. They were gassed under the guise of a harmless shower, their bodies were cremated and the ashes were strewn in a nearby swamp. The Nazis not only ruthlessly exploited the labor of those they did not kill immediately, they also looted the belongings the Jews brought with them. Even gold fillings were extracted from the mouths of the dead by a special detachment of inmates. The personal effects the Jews brought with them were sorted by inmates and stored in an area referred to by the inmates as "Canada": the ultimate land of plenty.

The photos in the album show the entire process except for the killing itself.

The purpose of the album is unclear. It was not intended for propaganda purposes, nor does it have any obvious personal use. One assumes that it was prepared as an official reference for a higher authority, as were photo albums from other concentration camps....

....MUCH MORE

Arrival

Selection 

"Kanada"

Assignment to Slave Labor 

Last Moments before the Gas Chambers

India: "Billionaire Ambani is Building World’s Biggest Data Center"

From Bloomberg, January 23/24:

  • Reliance joins rush of tech companies building data centers
  • Ambani plans aggressive pricing in offering AI services 

Mukesh Ambani’s Reliance Group is building what may become the world’s biggest data center by capacity in India, the latest in a blitz of global investments to capitalize on booming demand for artificial intelligence services.

The 67-year-old billionaire is buying Nvidia Corp.’s powerful AI semiconductors and setting up a data center in the town of Jamnagar that’s expected to have a total capacity of three gigawatts, according to people familiar with the matter, who asked not to be identified because the details aren’t public. That would make it far bigger than any data center now operating.

Ambani is joining a growing cohort of tech companies including Microsoft Corp., Alphabet Inc. and Amazon.com Inc. that are pouring billions of dollars into data centers to deliver AI capabilities to customers worldwide. This week, OpenAI, SoftBank Group Corp. and Oracle Corp. pledged to invest $100 billion to $500 billion in AI infrastructure in the US through a new entity called Stargate Project.

A Reliance spokesman declined comment, directing Bloomberg News to a recent speech from Reliance Jio Infocomm Ltd. CEO Akash Ambani, Mukesh’s son. The executive said at the time the conglomerate was building a datacenter to be completed within two years. “We want to complete it true Jamnagar style in record time — as we have always done in Jamnagar — in 24 months.”

Ambani’s project, if it goes ahead as envisioned, stands out for its sheer size. The largest data centers operating now are less than 1 gigawatt, according to data provided by market intelligence firm DC Byte, which would make his several times larger than what’s on the market.

Data center capacity is often measured in the megawatts (millions of watts) of electricity that the site can feed into servers, cooling systems and other equipment. The larger the figure, the higher the volume of computing operations it can support. And AI models are notoriously compute-intensive....

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