In the fast-evolving landscape of artificial intelligence, a new player has emerged, capturing the attention of tech enthusiasts and investors alike: DeepSeek. This Chinese startup has not only topped app download charts but has also sent ripples through the global tech market, challenging the dominance of established AI giants. But what exactly is DeepSeek, and why is everyone talking about it?
DeepSeek is a free, AI-powered chatbot developed by a Chinese startup of the same name. Functionally, it mirrors the capabilities of popular AI models like ChatGPT, handling tasks such as:
However, DeepSeek distinguishes itself with its reported power and cost-effectiveness.
In January, DeepSeek released its latest model, DeepSeek R1, claiming its capabilities rival those of OpenAI's models. This new model is a "reasoning" model, producing responses incrementally, simulating human thought processes. What's particularly noteworthy is the significantly lower cost associated with its development. While OpenAI's Sam Altman alluded to costs "over $100 million" for training GPT-4, DeepSeek researchers claim to have trained R1 for a mere $6 million (£4.8m).
DeepSeek's cost-effectiveness stems from several factors:
DeepSeek's emergence challenges the assumption that massive budgets and cutting-edge chips are the sole drivers of AI advancement. This realization led to market uncertainty, causing a significant drop in Nvidia's stock price. Forbes reported that Nvidia's market value shrunk from $3.5 trillion to $2.9 trillion.
Like other Chinese AI models, DeepSeek is trained to carefully avoid politically sensitive topics. This content filtering aligns with Chinese regulatory requirements.
DeepSeek was founded in December 2023 by Liang Wenfeng. Liang is a graduate of Zhejiang University with degrees in electronic information engineering and computer science. He is also the CEO of High-Flyer, a hedge fund that uses AI to analyze financial data for investment decisions. Liang has expressed his ambition for China to become an AI innovator, not just a follower, with this technology.
DeepSeek's rapid rise has not gone unnoticed by global leaders.
DeepSeek's success is seen as a victory for the Chinese government's pursuit of technological independence from the West. Chinese state media has highlighted the concerns it has raised in Silicon Valley and Wall Street. Marina Zhang, an associate professor at the University of Technology Sydney, notes that DeepSeek's advances are celebrated in China as proof of the country's growing technological prowess.
DeepSeek's emergence signals a shift in the global AI landscape. Its cost-effective approach and innovative use of resources demonstrate that AI breakthroughs are not solely dependent on immense financial investments. As competition intensifies, further innovation and advancements in AI are expected, potentially reshaping industries and transforming how we interact with technology.
