29th January 2025 (12 Topics)
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China's DeepSeek
Context
DeepSeek, a new AI model from China, has gained significant attention for surpassing other leading models like ChatGPT, Gemini, and Claude AI in performance. It has risen to become the top-rated free app on Apple's App Store in multiple countries, sparking interest in the tech industry and challenging the dominant position of US-based AI firms.
What is DeepSeek?
- DeepSeek is developed by a Hangzhou-based research lab, founded in 2023 by Liang Wenfeng, an engineer with expertise in AI and quantitative finance.
- Model: Based on the DeepSeek-V3 model, it outperforms OpenAI’s ChatGPT and offers cost-efficient, open-source AI services with unlimited free usage.
- Notable Release: The R1 release of DeepSeek rivals industry leaders like OpenAI and Anthropic but stands out for being more affordable and offering open-source access.
- Features and Differentiation
- Affordability: Unlike OpenAI and Meta, which rely on expensive hardware and resources, DeepSeek uses affordable AI hardware to reduce costs while maintaining high performance.
- Transparency: DeepSeek's chatbot is unique for explaining its reasoning before responding, making it more transparent compared to models like ChatGPT.
- Open-Source: DeepSeek's open-source approach allows developers to build on the platform, making it more accessible and flexible than other proprietary systems.
Impact on the AI Market
- Breakthrough despite Restrictions: DeepSeek has succeeded despite the US restrictions on semiconductor exports to China, limiting China’s access to advanced AI chips.
- Disruption: The model's success has caused stock prices of major US companies like Nvidia, Meta, and Microsoft to drop, as DeepSeek's low-cost alternative poses a potential disruption to the AI market.
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