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Who is behind DeepSeek and how did it achieve its AI ‘Sputnik moment’?

Jan 29, 2025 - theguardian.com
DeepSeek, a startup founded in May 2023 by Liang Wenfeng, has emerged as a significant player in the global AI development race by claiming to have trained an AI model comparable to OpenAI's ChatGPT with less than $6 million. This achievement is notable given the substantial investments by major companies like Microsoft in AI infrastructure. DeepSeek's success is attributed to its focus on research rather than profit, supported by Liang's hedge fund, High-Flyer Capital. Liang, who has a background in electronic information engineering and AI-driven stock trading, reportedly amassed a large collection of Nvidia GPUs, which played a crucial role in training the AI model despite US export controls on advanced semiconductors to China.

DeepSeek's rise highlights the ability of Chinese scientists to circumvent US restrictions on AI development, potentially prompting further tightening of controls. The startup's approach, leveraging local talent and maintaining a small, innovative team, has been key to its success. Despite skepticism about its claims and the challenges faced by other Chinese AI firms due to limited access to advanced GPUs, DeepSeek has managed to attract top talent with competitive salaries. Liang remains low-profile, focusing on advancing technology rather than seeking the spotlight.

Key takeaways:

  • DeepSeek, a startup founded in May 2023 by Liang Wenfeng, has developed an AI model comparable to OpenAI's ChatGPT with less than $6 million in funding.
  • Liang Wenfeng, a hedge fund entrepreneur, has leveraged his resources and a stockpile of Nvidia GPUs to advance AI research despite US export controls on semiconductors to China.
  • DeepSeek's success is attributed to its focus on research rather than profit, hiring local talent, and offering competitive salaries to attract top developers.
  • The company's achievements highlight China's ability to innovate in AI despite US restrictions, potentially prompting further tightening of US controls.
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