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The last artificial intelligence (AI) Models launched by Chinese startup Deepseek have spurred unrest in the tech sector after it emerged as a potential rival to major U.S. companies.
Deepseek wrote in a post last month that it trained its Deepseek-V3 model with less than $6 million of computing power from what it says were 2,000 NVIDIA H800 chips to achieve a level of performance on par with the most advanced models from Openai and Meta.
These chips are less advanced than the most cutting-edge chips on the market, which are subject to export controls, although Deepseek says it overcomes that disadvantage with innovative AI training techniques. Deepseek’s AI assistant, which is powered by the outdated Deepseek-V3 model Openai Chatgpt As the highest-rated free app in the Apple App Store in the United States
The emergence of the China-based company has raised questions about executives of U.S. technology companies investing billions of dollars in advanced chips and large data centers used to train AI models. It also serves as a “Sputnik moment” for the AI race between the United States and China following the perception that the United States had an advantage over its geopolitical rival in the emerging field.
Chinese app Deepseek Hammers US Stocks with cheaper open-source AI model
Deepseek’s AI assistant has overtaken Openai’s Chatgpt in the Apple App Store. (Christoph Dernbach/Picture Alliance via Getty Images/Getty Images)
The quality of Deepseek’s models and its reported profitability have changed the narrative that China’s AI Companies Followed by their American counterparts, which started after the first Chinese equivalent of Chatgpt was released by Baidu.
The Deepseek-R1 model was released last week and is 20 to 50 times cheaper to use than Openai’s O1 model, depending on the task, according to a post on the company’s official WeChat account.
The R1 model is also open source and available to users for free, while Openai’s Chatgpt Pro plan costs $200 per month.
Silicon Valley praising Chinese AI startup Deepseek: “Deep gift to the world”
Deepseek claims its model performed on par with the latest OpenAI and anthropogenic models at a fraction of the cost. (Getty Images / Getty Images)
Deepseek was created in late 2023 after controlling shareholder Liang Wenfeng, co-founder of Quantitative hedge fund High-Flyer, moved to create a “new and independent group, to explore the essence of [artificial general intelligence]. “
Artificial general intelligence (AGI) is also a goal pursued by Openai, which defines AGI as autonomous systems that outperform humans in the most economically valuable tasks.
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“Deepseek has done something truly impressive with far fewer employees and funding than Openai, and in less time,” said Mark Malek, CIO at Siebert. Malek noted that Deepseek, “doesn’t compete with Openai” and went on to explain some of the differences between Deepsek and more well-known AI applications.
“Openai (and Google’s Gemini) is a broad, general-purpose tool, based on a large body of information. It can be used to build more narrowly focused applications as well. To be task-specific,” Malek said . “Now, this doesn’t mean Deepseek isn’t good. What’s important to understand is that it’s not the same as Openai, so it would logically take fewer resources.”
Reuters contributed to this report.
