The global AI race just got more competitive, and it
has nothing to do with Silicon Valley. Chinese startup DeepSeek, with its
revolutionary AI models, has challenged the established AI hierarchy.
By offering cutting-edge technology at a fraction of
the cost, DeepSeek has set a new benchmark, sparking widespread debate about
the future of AI investment and competition between the US and China.
DeepSeek, founded in Hangzhou in 2023 by Liang
Wenfeng, has quickly become a prominent force in the AI sector. Its latest
model, DeepSeek-R1, has drawn global attention for its reasoning skills and
unparalleled cost-efficiency.
The company’s AI assistant recently surpassed ChatGPT
to become the most downloaded free app on Apple’s App Store, Reuters reported. What
makes this even more remarkable is the company’s approach. Despite U.S. export
restrictions, DeepSeek built its models using Nvidia’s H800 chips, which are
less advanced but widely available in China.
What DeepSeek’s AI really means for the market https://t.co/VkZYASiSIT | opinion
— Financial Times (@FT) January 28, 2025
This breakthrough challenges the long-held belief that
cutting-edge AI requires the most expensive hardware. DeepSeek claims its R1
model is up to 50 times cheaper to operate than OpenAI’s o1 model, a revelation
that shook markets.
DeepSeek’s rise has sparked concerns in the US tech
industry. Trump also reinforced his administration’s commitment to tightening
export controls on advanced AI hardware.
What Sets DeepSeek Apart
DeepSeek’s models stand out not only for their cost
efficiency but also for their open-source approach. Key components of the
technology are accessible for others to use and modify, a contrast to the
closed systems of many US competitors.
Nvidia has described DeepSeek’s achievements as a perfect
example of Test Time Scaling, a method allowing AI systems to refine their
reasoning without requiring additional data.
If DeepSeek supposedly owns 50,000 $NVDA H100 chips, why is the stock down over 12%?
This should be a bullish development for Nvidia, not a decline…
Something doesn’t quite add up 👀 pic.twitter.com/eHcO0qFCH3
— Stocktwits (@Stocktwits) January 27, 2025
DeepSeek’s success has not gone unnoticed by China’s
leadership. On the same day it launched the R1 model, DeepSeek’s founder
attended a symposium hosted by Chinese Premier Li Qiang. This underscores
Beijing’s emphasis on AI as a strategic industry capable of overcoming U.S.
restrictions and driving self-sufficiency.
DeepSeek’s advancements highlight the shifting
landscape of AI innovation. With geopolitical tensions and economic stakes at play, the rise of this Chinese startup could mark the beginning of a new
chapter in global tech rivalry.
The question now is how the US will respond to this
growing challenge and whether it can maintain its lead in the AI race.
The global AI race just got more competitive, and it
has nothing to do with Silicon Valley. Chinese startup DeepSeek, with its
revolutionary AI models, has challenged the established AI hierarchy.
By offering cutting-edge technology at a fraction of
the cost, DeepSeek has set a new benchmark, sparking widespread debate about
the future of AI investment and competition between the US and China.
DeepSeek, founded in Hangzhou in 2023 by Liang
Wenfeng, has quickly become a prominent force in the AI sector. Its latest
model, DeepSeek-R1, has drawn global attention for its reasoning skills and
unparalleled cost-efficiency.
The company’s AI assistant recently surpassed ChatGPT
to become the most downloaded free app on Apple’s App Store, Reuters reported. What
makes this even more remarkable is the company’s approach. Despite U.S. export
restrictions, DeepSeek built its models using Nvidia’s H800 chips, which are
less advanced but widely available in China.
What DeepSeek’s AI really means for the market https://t.co/VkZYASiSIT | opinion
— Financial Times (@FT) January 28, 2025
This breakthrough challenges the long-held belief that
cutting-edge AI requires the most expensive hardware. DeepSeek claims its R1
model is up to 50 times cheaper to operate than OpenAI’s o1 model, a revelation
that shook markets.
DeepSeek’s rise has sparked concerns in the US tech
industry. Trump also reinforced his administration’s commitment to tightening
export controls on advanced AI hardware.
What Sets DeepSeek Apart
DeepSeek’s models stand out not only for their cost
efficiency but also for their open-source approach. Key components of the
technology are accessible for others to use and modify, a contrast to the
closed systems of many US competitors.
Nvidia has described DeepSeek’s achievements as a perfect
example of Test Time Scaling, a method allowing AI systems to refine their
reasoning without requiring additional data.
If DeepSeek supposedly owns 50,000 $NVDA H100 chips, why is the stock down over 12%?
This should be a bullish development for Nvidia, not a decline…
Something doesn’t quite add up 👀 pic.twitter.com/eHcO0qFCH3
— Stocktwits (@Stocktwits) January 27, 2025
DeepSeek’s success has not gone unnoticed by China’s
leadership. On the same day it launched the R1 model, DeepSeek’s founder
attended a symposium hosted by Chinese Premier Li Qiang. This underscores
Beijing’s emphasis on AI as a strategic industry capable of overcoming U.S.
restrictions and driving self-sufficiency.
DeepSeek’s advancements highlight the shifting
landscape of AI innovation. With geopolitical tensions and economic stakes at play, the rise of this Chinese startup could mark the beginning of a new
chapter in global tech rivalry.
The question now is how the US will respond to this
growing challenge and whether it can maintain its lead in the AI race.
