The tech world is excited about DeepSeek, a Chinese startup with new artificial intelligence models, which it says are as good as or better than the top US models but cost much less.
China’s Deepseek AI threatens to overtake US market crash looms. This AI breakthrough has shaken the US tech industry, sending stocks into a tailspin. DeepSeek’s rise highlighted China’s growing AI capabilities despite export bans.
The Company got global attention after revealing that training its Deepseek-V3 model only cost under $6 million using Nvidia H800 chips.
What is DeepSeek and why is it making a buzz?
Deepseek is an AI platform that provides multiple advanced AI models to perform tasks like natural language processing, data analysis and other machine learning tasks.
DeepSeek’s AI Assistant has become the top free app on Apple’s App Store in the United States, surpassing ChatGPT.
Its models are designed to be highly efficient, cost-effective and capable of handling complex tasks accurately.
Like many other Chinese AI models – Baidu’s Ernie or Doubao by ByteDance – DeepSeek is trained to avoid politically sensitive questions.
DeepSeek claims it achieved this at a remarkably low cost, with researchers stating it took just $6 million (£4.8 million) to train their model—far less than the “over $100 million” hinted at by OpenAI CEO Sam Altman when discussing GPT-4.
How DeepSeek is a Threat to US AI Industry
- Deepseek’s low-cost model challenged US AI dominance, causing market panic
- DeepSeek’s R1 was built on underpowered chips, surprising the whole tech world
- The Model’s open source and free nature set it apart from US competitors
- The low-cost model raised concerns over the sustainability of high-end AI investments
Who is Liang Wenfeng, The man behind DeepSeek ?
According to Chinese corporate records, DeepSeek, a startup based in Hangzhou, China, is managed by Liang Wenfeng, the co-founder of the quantitative hedge fund High-Flyer.
In March 2003, Liang’s Fund announced a shift in focus to create a new and independent research group focused on Artificial General Intelligence(AGI).
It’s unclear how much High-Flyer has invested in DeepSeek.
Here you can see multiple reactions from Tech world on social media X
OpenAI, Sam Altman’s post on X
deepseek’s r1 is an impressive model, particularly around what they’re able to deliver for the price.we will obviously deliver much better models and also it’s legit invigorating to have a new competitor! we will pull up some releases.
but mostly we are excited to continue to execute on our research roadmap and believe more compute is more important now than ever before to succeed at our mission.the world is going to want to use a LOT of ai, and really be quite amazed by the next gen models coming.
look forward to bringing you all AGI and beyond.
Later, DeepSeek, announced that it is temporarily limiting new user registrations due to cyber attacks. The decision comes in the wake of large-scale malicious attacks on the company’s services, which has stirred the global market.
What is Artificial Intelligence?
Artificial Intelligence, or AI, is a type of technology that makes computers act and think in ways that seem human. It works by teaching machines to learn from huge amounts of information, spot patterns, and solve problems.
This results in software that can do things like hold conversations, predict what people might want to buy, or even create new content. The most popular examples of AI today are chatbots like ChatGPT and DeepSeek, powered by a type of AI called generative AI. These tools learn from massive collections of online text and images to generate human-like responses or new content.
While AI is incredibly useful, it’s not perfect—it can sometimes share incorrect information or reflect biases present in its training data. Despite this, millions of people use AI tools daily to write emails, summarize information, answer questions, and even assist with coding or studying. It’s a helpful companion for tackling everyday tasks!
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