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What Is China's DeepSeek and Why Is It Freaking Out the AI World?

Jan 27, 2025 - financialpost.com
DeepSeek, a Chinese AI startup founded in 2023 by Liang Wenfeng, has gained significant attention for its breakthrough AI model that rivals top chatbots like OpenAI's ChatGPT at a fraction of the cost. Based in Hangzhou, DeepSeek's open-source AI models have implications for the global tech industry, challenging the notion that AI development requires increasing power and energy. The company's mobile app quickly topped iPhone download charts in multiple countries, raising concerns in the US about its lead in AI technology. Despite US export restrictions on advanced semiconductors to China, DeepSeek's progress suggests Chinese engineers have found ways to advance AI with limited resources.

DeepSeek's R1 model is noted for its efficiency and performance, comparable to leading AI models, and has sparked global interest since its release. The company's success may pressure US AI providers to lower prices and question the massive spending on AI infrastructure by companies like Meta and Microsoft. However, DeepSeek faces challenges such as self-censorship on sensitive topics in China and managing its cloud infrastructure amid growing popularity. The startup's advances could accelerate the adoption of AI reasoning models and prompt regulatory measures to control AI development.

Key takeaways:

  • DeepSeek, a Chinese AI startup, has developed a breakthrough AI model that rivals top chatbots at a fraction of the cost, raising concerns in Silicon Valley.
  • The startup's AI assistant app quickly became the top download on Apple's iPhone charts, challenging the US's lead in AI technology.
  • DeepSeek's model is more efficient, potentially reducing the need for expensive AI infrastructure and questioning the effectiveness of US export restrictions on advanced semiconductors to China.
  • Despite its success, DeepSeek faces challenges such as self-censorship on sensitive topics and managing increased traffic due to its growing popularity.
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