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The latest models of Artificial Intelligence (AI) launched by a Chinese start-up have raised an uproar in the technology sector following its emergence as a potential competitor to established firms.
Deepseek wrote in a paper last month that it trained its deep-v3 model with a size of less than $ 6 million of computers from what Chips says to work on the most advanced models from OpenAI and Meta.
Those chips are more advanced than the most cutting-edge chips on the market, which are subject to export controls, although depseed says they overcome that flaw with innovative AI training techniques. Deepseek’s AI assistant, powered by the Deepseek-V3 model, surpasses Opelai’s Chatgpt as a limited free app in the Apple App Store in the US
The emergence of the China-based company has raised questions about leading US tech companies investing millions of dollars in advanced chips and large data centers used to train AI models. It also served as the “Sputnik Moment” of the AI ​​race between the US and China following the perception that the US held the upper hand over its sought-after rivals in the emerging field.
Chinese App Deepseek Hammers US Stocks with Cheaper Open-Source Ai Model
Deepseeek’s ai assistant passes open chatgt in the Apple App Store. (Christoph Dernbach / Photo Alliance via Getty Images / Getty Images)
The quality of Deepseeek’s Models and its reported cost effectiveness have changed the narrative that Chinese AI firms are following their US counterpart, which started after another similar China.
The Deepseek-R1 model was released last week and is 20 to 50 times cheaper to use than the O1 model, depending on the function, according to a post on the company’s official WeChat account.
The R1 model is also open and available to users for free, while the chatgpt Pro plan costs $200 per month.
Silicon Valley Faing Chinese Ai Startup Deepseek: ‘World’s Greatest Gift’
Deepseek says its PAR model is the latest Opel and Anthropic models at a fraction of the cost. (Getty Images / Getty Images)
Deepseek was created in late 2023 after controlling shareholder liang wenfeng, the founder of the radiative hedge fund High-Flyer, moved to create a “New and Indepert Group, to explore the core of [artificial general intelligence]. “
Artificial General Intelligence (Agi) is also the goal pursued by Opelai, who defines AGI as autonomous systems that surpass humans in the most economically important tasks.
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“Deepseek is doing something really impressive in terms of staff and money than Opelai, and in less time,” said Mark Malek, CIO at Siebert. Malek noted that in depth, he “doesn’t compete with OpenAi,” and went on to explain to others the differences between popular AI applications.
“Vulai (and Gemini’s Gemini) is a comprehensive, objective tool, based on a large corpus of information. It can be used to create programs that focus on natural language processing, while creating great skills to become a professional,” said Malek. “Now, that doesn’t mean the depth isn’t good. What’s important to understand is that it’s not the same thing as OpenAI, so it can reasonably take fewer resources.”
Reuters contributed to this report.