DeepSeek V4: The "Death Line" for Silicon Valley - Why Token Efficiency is the True Path to AGI

Recently, the model war in Silicon Valley has entered a white-hot phase of high-intensity gaming.

The launch of DeepSeek V4 coincided almost exactly with Kimi K2.6, OpenAI's GPT-5.5, Google's next-generation TPU announcement, and Anthropic's latest funding news. It is a true clash of titans. But if you look closely, Silicon Valley's reaction to DeepSeek this time is fundamentally different from previous generations. What they feel is no longer pure "surprise," but structural fear.

Because what DeepSeek V4 brings is not just a next-generation large model with invincible benchmark scores, but a "death line" drawn for American foundational model companies.

Why Has Efficiency Become a Part of Intelligence?

Previously, we believed that the only path to AGI (Artificial General Intelligence) was to recklessly stack computing power—more GPUs, larger parameter scales, and stronger closed-source moats.

But DeepSeek V4 proved that: Without extreme efficiency, AGI will always just be a demo sitting in a server room. Only when cost and efficiency reach a certain critical point can AGI truly become infrastructure for all of humanity.

On a technical level, DeepSeek V4 continues to leave everyone in the dust when it comes to Token Efficiency. Several of its core technologies have pushed large model architecture into a new dimension:

• CSA (Compressed Sparse Attention) and HCA (Heavily Compressed Attention): Greatly reduces the computational complexity of the model when processing long contexts, supporting up to 1,000,000 tokens of ultra-long context.
• mHC (Manifold-Constrained Hyper-Connection): Performs surgery on the information transmission channels of the neural network, achieving stronger information representation with fewer parameters.
• Muon Optimizer: This is the nuclear weapon of training efficiency, pushing training stability and resource utilization to the extreme.

What is the result? The compute cost is compressed to 1/3 of the traditional architecture, and the memory footprint is reduced to a terrifying 1/10.

While American model vendors are still having headaches over training bills of tens of millions of dollars a day, DeepSeek simply flipped the table—intelligence itself is no longer scarce; "cheap intelligence" is the ultimate moat.

The "Death Line" and Silicon Valley's Diverging Paths

Jenny Xiao, a former OpenAI researcher and partner at Leonis Capital, mentioned a very sharp viewpoint in a recent discussion:

"If you are a foundational model company, and you are surpassed by an open-source company, the value of your business is basically zero."

This explains why the current appetite of the capital market for Anthropic is even greater than for OpenAI. Many institutions are even trying to sell off OpenAI shares before its IPO.

The reason is simple:

• OpenAI chose "Big and Comprehensive": Trying to cover all scenarios with more expensive and massive models (like GPT-5.5). But their high pricing is being crazily eroded by lighter, cheaper open-source models.
• Anthropic chose "Less but Better": For example, launching Claude Code and going all-in on "Agentic Coding". Because in the eyes of AI, all computer tasks are essentially programming. Winning over programmers means winning the API definition rights to AGI.

Reconstructing the Compute Stack: Will NVIDIA Fall from the Pedestal?

As DeepSeek V4 has been confirmed to be adapted to domestic chips like Huawei Ascend, another long-unresolved question has been brought to the table: How long can NVIDIA's dominance remain solid?

Senior chip architect Zhibin Xiao gave an objective judgment: In the short term, NVIDIA will not be replaced. Because the ecosystem barrier of CUDA is not just operators, but also includes communication, training stability, and massive developer inertia.

But long-term cracks have already appeared. The war of large models is shifting from the "training side" to the "inference deployment side."

On the inference end, a chip no longer needs to "rule them all." Heterogeneous computing will become the norm—some chips are specifically responsible for Attention calculation, and some are dedicated to KV Cache storage scheduling.

When the software architecture (like DeepSeek) can perfectly perfectly abstract away non-NVIDIA underlying compute power, the Chinese AI ecosystem, in a desperate situation where hardware is blocked, abruptly completed a shocking breakout through the extreme extraction of software-side efficiency.

The Endgame: From Benchmark Machines to "Systemic Competition"

The paradigm of AI competition has changed.

The significance of DeepSeek is that it makes the big shots in Silicon Valley clearly see: The war of large models is shifting from a single Benchmark competition to a brutal systemic war.

Model architecture, Token efficiency, underlying chip adaptation, software abstraction stacks, commercial pricing, and the open-source ecosystem—these are no longer scattered links, but different battlefields of the same war.

On the eve of the full explosion of the Agentic era, the future winners will definitely not just be the companies that can build the "smartest brain."

The true king is the one who can seamlessly distribute intelligence to the most enterprises and developers in the world with the lowest cost, fastest speed, and most stable compute stack.

And this time, DeepSeek is standing in the very center of the poker table.