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What is DeepSeek? Get to know the Chinese startup that shocked the AI industry

Jan 27, 2025 - businessinsider.com
DeepSeek, a Chinese AI startup founded in 2023 by Liang Wenfeng, has disrupted the AI industry with its new chatbot model, R1. The model is said to rival OpenAI's o1 in reasoning capabilities but operates at a significantly lower cost. Trained on around 2,000 Nvidia H800 chips for approximately $5.6 million, DeepSeek's model is estimated to be 20 to 40 times cheaper to run than similar models from major US tech companies. This cost efficiency has raised concerns about the massive investments by Silicon Valley in AI infrastructure, impacting tech stocks, including Nvidia, which saw a significant drop in its market cap.

DeepSeek's rise has sparked discussions among tech leaders, with Meta's Yann LeCun and Microsoft's Satya Nadella commenting on the implications of more efficient AI models. While DeepSeek's R1 model is proficient in math, code, and reasoning tasks, it has limitations in addressing sensitive topics, particularly those related to China. The success of DeepSeek's model has been likened to a "Sputnik moment" for AI, highlighting the potential shift in AI leadership and innovation dynamics.

Key takeaways:

  • DeepSeek is a Chinese AI company that has developed a new AI model, R1, which is significantly cheaper to run than models from major US tech companies.
  • DeepSeek's rise has impacted tech stocks, particularly Nvidia, and raised questions about the sustainability of massive AI investments by Big Tech.
  • The company's R1 model uses "pure reinforcement learning" and is comparable to OpenAI's o1 model, but it struggles with sensitive topics related to China.
  • Tech leaders have commented on DeepSeek's success, with some suggesting it represents a shift towards more efficient and accessible AI models.
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