AI Revolution: Chinese Startup DeepSeek Shakes Up the Tech World
A New Player in Town
In a move that’s sending shockwaves through the technology industry, Chinese startup DeepSeek has launched its latest AI models, claiming they’re on par with or even surpass industry-leading models in the United States at a fraction of the cost. This bold move has raised eyebrows globally, with many wondering if DeepSeek’s AI Assistant, powered by DeepSeek-V3, can maintain its top spot on Apple’s App Store in the United States.
The Rise of DeepSeek
The release of OpenAI’s ChatGPT in 2022 sparked a frenzy among Chinese tech firms, with many rushing to create their own chatbots powered by artificial intelligence. However, the first Chinese ChatGPT equivalent, developed by search engine giant Baidu, fell short of expectations. DeepSeek’s models have flipped this narrative on its head, boasting quality and cost efficiency that’s unmatched by its U.S. counterparts.
DeepSeek’s AI Models: A Game-Changer
DeepSeek-V3 and DeepSeek-R1 have garnered praise from Silicon Valley executives and U.S. tech company engineers alike. These models are not only on par with OpenAI and Meta’s most advanced models but also significantly cheaper to use. The DeepSeek-R1, released last week, is reportedly 20 to 50 times cheaper to use than OpenAI’s o1 model, depending on the task.
Skepticism and Controversy
Not everyone is convinced of DeepSeek’s success story. Scale AI CEO Alexandr Wang has expressed skepticism, claiming that DeepSeek has 50,000 Nvidia H100 chips, which would violate Washington’s export controls. Bernstein analysts have also raised questions about the total training costs for DeepSeek’s V3 model, which remain unknown.
The Mastermind Behind DeepSeek
DeepSeek is a Hangzhou-based startup controlled by Liang Wenfeng, co-founder of quantitative hedge fund High-Flyer. Liang’s fund announced its shift in focus from trading to creating a “new and independent research group” to explore Artificial General Intelligence (AGI). It is unclear how much High-Flyer has invested in DeepSeek, but the connection between the two companies is undeniable.
Beijing’s Take on DeepSeek
DeepSeek’s success has already caught the attention of China’s top political circles. Founder Liang attended a closed-door symposium hosted by Chinese premier Li Qiang, signaling that DeepSeek’s achievements could be crucial to Beijing’s policy goal of overcoming Washington’s export controls and achieving self-sufficiency in strategic industries like AI.
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