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DeepSeek's new AI model appears to be one of the best 'open' challengers yet | TechCrunch

Dec 26, 2024 - techcrunch.com
A Chinese lab, DeepSeek, has released DeepSeek V3, a powerful open AI model under a permissive license, allowing for modification and commercial use. The model excels in various text-based tasks, outperforming both open and closed AI models, including Meta’s Llama 3.1 and OpenAI’s GPT-4o, in coding competitions and benchmarks. With 685 billion parameters and trained on 14.8 trillion tokens, DeepSeek V3 is significantly larger than its competitors. Despite its size, it was developed on a relatively modest budget of $5.5 million using Nvidia H800 GPUs, which are restricted for Chinese companies by the U.S. Commerce Department.

DeepSeek V3's development reflects DeepSeek’s strategy of open sourcing as a cultural act, challenging the closed-source approach of competitors like OpenAI. However, the model is subject to Chinese regulations, filtering responses on politically sensitive topics. DeepSeek, backed by High-Flyer Capital Management, has influenced competitors like ByteDance and Alibaba to adjust their pricing strategies. High-Flyer, founded by Liang Wenfeng, aims for superintelligent AI and builds its own server clusters for model training.

Key takeaways:

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  • DeepSeek V3, developed by the Chinese AI firm DeepSeek, is one of the most powerful open AI models, outperforming both open and closed models in various benchmarks.
  • The model boasts 685 billion parameters and was trained on a dataset of 14.8 trillion tokens, making it significantly larger than many competitors.
  • DeepSeek V3 was trained using Nvidia H800 GPUs in just two months at a cost of $5.5 million, showcasing efficient resource utilization despite U.S. restrictions on GPU procurement.
  • DeepSeek's models have influenced competitors to reduce prices, and the company is backed by High-Flyer Capital Management, which aims to achieve "superintelligent" AI.
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