Rocket Fuel Newsletter – A look back at the impact of the pandemic and AI large language models

The median homeowner in the United States stays in their house for nearly 12 years. However, this duration can vary significantly across different states. For example, the median homeowner in Kentucky only stays in their home for 5.8 years.

For the full story on typical homeownership time frames, check out this article from Redfin.

This week, we dive into what it costs to buy every house in America, look back at the pandemic, and explore large language models.

Fuel up! 🚀  

America’s wealthiest 1% could buy 99% of America’s homes

The wealth gap continues to widen as the net worth of America’s wealthiest individuals reaches a record $49.2 trillion – an amount nearly equivalent to the total value of all homes in the country.

For the full story, click here.

How the pandemic transformed the housing market over 5 years

The pandemic delivered major wins for current homeowners and those buying early on. Here are five ways the market has changed since then:

  1. Home prices increased 45% from a median of $289,000 to $418,000.
  2. Interest rates dropped to their lowest levels ever and have since increased to over 7%.
  3. The supply of homes for sale has been extremely low, until just recently. This is because most homeowners have a mortgage rate below 6% and are unwilling to put their home on the market, fearing a higher payment.
  4. Builders increased home production to combat high demand at the start of the pandemic but have since slowed down as construction prices and interest rates increased.
  5. Cash buyers were very active in the early and middle parts of the pandemic but have since pulled back.

Click here for the full article from Axios.

Can you sell a home that has burned down?

A house at 17126 Avenida de la Herradura in the Pacific Palisades was reduced to ashes by the recent LA wildfires. The 9,900-square-foot lot recently sold for just over a million dollars despite not being rebuilt. Some LA buyers think that the Palisades area will rebound in the next few years.

For the full story, click here.

Large language models and a deep dive into DeepSeek

A large language model (LLM) is a type of artificial intelligence that is trained on a vast amount of text data to understand and generate human-like text.

Generative AI, of which LLMs are a key component, is a broader category of AI technologies that can create or generate new content, such as text, images, or music, based on the input it receives.

DeepSeek is an artificial intelligence system that has garnered significant attention and debate within the industry. As a state-of-the-art LLM, DeepSeek distinguishes itself through its advanced natural language processing (NLP) capabilities, enabling it to understand and generate human-like text with remarkable accuracy. DeepSeek was an unexpected addition to the AI playing field, and the combination of accuracy and affordability sparked a stir in the industry.

LLMs, particularly advanced ones like DeepSeek, are designed to process and understand language in a way that mirrors human comprehension, allowing them to engage in conversations, answer questions, and generate creative content. However, this advancement is also accompanied by concerns about its implications for society and the workforce.

From an economic perspective, DeepSeek’s impact could be profound. Its ability to automate knowledge-based tasks, such as customer service, content creation, and research analysis, could lead to increased productivity and efficiency across multiple industries. This shift could disrupt traditional business models and create new opportunities for innovation. Companies that adopt DeepSeek may gain a competitive edge by leveraging its capabilities to make faster, more informed decisions. However, this also raises questions about job displacement and the ethical use of such powerful technology.

The controversy surrounding DeepSeek and other LLMs is not just about its technical capabilities but also about the societal implications. As an AI system with unprecedented understanding and reasoning abilities, DeepSeek could influence decision-making processes in ways that are not fully understood. LLMs are only able to produce content based on the materials on which they were trained. This has led to discussions about transparency, accountability, and the potential for misuse. While some view DeepSeek as a tool for progress, others worry about its ability to make decisions that could have far-reaching consequences.

Despite the controversy, LLMs represent a bold step forward in AI development. Its potential to transform industries and challenge the boundaries of human-like intelligence makes it a subject of both excitement and caution. As the technology continues to evolve, it will be crucial for developers, policymakers, and users to engage in thoughtful dialogue about how to harness its power responsibly

Staying ahead means engaging with industry leaders and discovering what’s next. We’ll be at these events – let’s connect.

Join us for meaningful conversations, valuable insights, and new opportunities to drive your business forward. We look forward to seeing you there.

Great times on last week’s puzzle – over 20% of our solvers finished in under a minute. Our best time of the week was 27 seconds, far ahead of second place’s 42 seconds.

This week’s puzzle gets 2 Rockets out of 5.

Click here to solve!

Good luck!