Chinese startup “DeepSeek” is taking the internet by storm and has firmly taken over its rival ChatGPT on the Apple App Store. The DeepSeek AI chatbot has become the top free download in the US, while, ironically, rival tech giants have felt the impact and faced declining stocks amidst the hype.
DeepSeek sent shockwaves through the global tech sector. The creator claims that the system is developed using fewer resources than those employed by its competitors in the U.S.
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What Is DeepSeek?
DeepSeek, an AI-powered chatbot, was founded in 2023 by Liang Wenfeng, co-founder of High-Flyer. The Chinese startup reportedly grew by utilizing funding from High-Flyer, an AI research unit.
Founder of DeepSeek, Liang Wenfeng. Source: EI Independiente
The origin of this startup illustrates that they want to focus on large language models and reaching AGI, or artificial general intelligence. This is a branch of artificial intelligence that has the capability to overtake human intellect and reach in-depth intelligence.
Earlier in January, DeepSeek released its R1 model, which took the internet by storm and boggled tech giants with their cutting-edge reasoning model. It is an open-source tool that allows any developer to use it. Topping the charts on app stores, users are simply in awe of this new app, praising its performance and reasoning functionalities.
Like any other Chinese AI apps or chatbots, it comes with limitations when inquired about certain topics. For example, it is hesitant to respond to political prompts.
Moreover, despite chip export restrictions for China by the U.S., it managed to launch its R1 model. Estimates vary on the exact cost of DeepSeek’s R1 or the number of GPUs used. Jefferies analysts suggest a recent version had a training cost of just $5.6 million, assuming $2 per 800-hour rental. This is less than 10% of the cost to develop Meta’s Llama.
While the exact figures may differ, reports agree that DeepSeek’s R1 was created at a fraction of the cost compared to rival models from OpenAI, Anthropic, Google, and others.
Unlike its competitors, DeepSeek is cheaper to use. Its R1 model is 10-50 times cheaper to use than the OpenAI o1 model, depending on the task.
“China’s AI cannot remain a follower forever. Chinese companies had grown accustomed to leveraging technological innovations developed elsewhere.” Liang said.
Limitations in Implementing DeepSeek
Developing AI under Chinese government censorship was seen as a significant challenge, but DeepSeek has managed to navigate this by training its model on an open-source foundation. This approach allows it to perform complex tasks while restricting certain information as required.
Remarkably, DeepSeek claims to have built its AI for just $6 million, a fraction of the billions spent by U.S. AI firms. Its founder reportedly stockpiled Nvidia A100 chips—banned from export to China from 2022—and combined them with cheaper, less advanced chips to create a powerful AI system.
“China must gradually transition from being a beneficiary to a contributor, rather than continuing to ride on the coattails of others.” Liang Said.
However, implementing DeepSeek isn’t without limitations. The reliance on open-source models raises questions about data quality and originality, and the restrictions imposed by censorship could limit its global competitiveness and versatility.
Why DeepSeek Causing Stir in Silicon Valley?
Chinese startup DeepSeek claims to use less data and operate at a lower cost than competing models. The company’s announcement raises questions about the industry assumption that higher investment leads to better performance.
Following the announcement, Nvidia’s stock declined by 19%, reducing its market value by $600 billion. Silicon Valley giants Meta and Alphabet also saw similar stock drops.
The model claims to have the same capabilities as OpenAI while being more cost-effective. This has caused a stir among tech giants in the industry. Due to this, the new AI chatbot has become the top free downloaded app in the U.S.
A New Era of AI Accessibility
DeepSeek is not just another chatbot; it represents a leap forward in democratizing AI technology. Unlike earlier models that required technical expertise to operate, DeepSeek is designed to be user-friendly, making advanced AI accessible to everyone.
Whether it’s crafting essays, solving complex equations, or even generating creative content like poetry and code, the AI delivers results with remarkable speed and precision.
Ethical AI at the Forefront
In an era where concerns about AI ethics and bias are paramount, DeepSeek has prioritized transparency and responsibility. DeepSeek is built with robust safeguards to minimize harmful outputs and ensure ethical usage. The company has also committed to ongoing updates and improvements, ensuring the AI remains aligned with societal values.
A Word from the DeepSeek Itself
DeepSeek doesn’t shy away from speaking on this with the humility that has come to characterize its public persona: “I am here to assist, inspire, and empower. My aim is toward democratizing knowledge and creativity to enhance their accessibility to all. I’m just a tool, but I hope to be a force for positive change.”
With innovations flowing freely from DeepSeek, the company sees the future shining bright for itself. DeepSeek has just hinted that, besides a great deal of real-time collaboration in the future, deeper integration with further technologies shall be made available.
Each innovation brings us closer to the dream of consolidation as the true engine behind changes in the world of AI. The fact of the matter is: the future of AI is in itself, and it goes by the name of DeepSeek.
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FAQs
1. What can DeepSeek do for me?
DeepSeek helps with everything from answering questions and solving problems to generating creative ideas and streamlining tasks, making your life easier and more productive.
2. Is DeepSeek easy to use?
Absolutely! DeepSeek is designed with simplicity in mind, so whether you’re tech-savvy or a beginner, you can start using it right away.
3. Is DeepSeek safe and ethical?
Yes, DeepSeek prioritizes ethical AI practices, with built-in safeguards to ensure responsible and unbiased usage.
4. Can DeepSeek work in multiple languages?
Yes, DeepSeek supports multiple languages, breaking down barriers and making it a powerful tool for users around the globe.