DeepSeek, the Chinese AI startup, has been nothing less than a storming of the bastion, denting the market and challenging behemoths such as OpenAI and Google. What sets DeepSeek apart, however, is the fact that it has developed an influential AI model at a much lower cost compared to what a big company generally invests. The breakthrough upset not only the market but opened new vistas in artificial intelligence as well.
Why Deepseek is a Game Changer?
DeepSeek is a pretty new name among AI, founded in 2023, yet has left a deep footprint. It made headlines everywhere after it launched the open-source AI model called DeepSeek R1, which rapidly shot to be the top-rated free app on the U.S. Apple App Store. Fast forward, that rapid rise to popularity underlined how it would reshape the way AI models are built and used around the world.
Perhaps the most salient feature of DeepSeek is that it was done really inexpensively. It claims less than $6 million in computing resources to train its model, a surprisingly low figure compared to the billions that major U.S. companies have invested. That challenges the notion that AI development requires enormous budgets. In addition, DeepSeek leverages state-of-the-art features, including a mixture of experts and multi-head latent attention, each of which allows it to run faster without a loss in performance.
The arrival of DeepSeek has brought with it excitement and concern. The news sent shockwaves through the stock market, where nearly $600 billion was wiped off Nvidia’s valuation after investors worried cheaper AI models could dent demand for high-end chips. Several countries have banned or restricted DeepSeek over concerns about data privacy and national security risks.
What is Next?
Looking ahead, DeepSeek represents a major shift in the AI industry. With DeepSeek, advanced AI models start becoming much more affordable and accessible to many, democratizing the use of technology to speed up progress in various fields such as health, education, and business. At the same time, its growth increases the pressure on big technology firms to review their strategy.