The new AI model was created by DeepSeek, a startup that was only founded a year ago. Somehow, the company has achieved what renowned tech investor Marc Andreessen has dubbed “AI’s Sputnik moment”: R1 can almost match the capabilities of its much more well-known competitors, such as Google’s Gemini, OpenAI’s GPT-4, and Meta’s Llama, but at a much lower cost.
Driven by interest in the ChatGPT rival, DeepSeek’s AI assistant rose to the top of the free software download charts on Apple’s iPhone store on Monday. The notion that the Chinese startup has caught up to the leading American companies in generative AI at a fraction of the cost is one of the things that worries some observers of the U.S. tech industry.
Everything About DeepSeek
According to DeepSeek, its latest models were constructed using Nvidia’s less powerful H800 chips, which are legal in China. This suggests that advanced AI research may not require the most expensive technology.
After releasing a new AI model last month that it claimed was comparable to models from American companies like ChatGPT maker OpenAI and was more economical in its use of pricey Nvidia chips to train the system on massive amounts of data, DeepSeek started to garner more attention in the AI industry.
When the chatbot first surfaced on the Google and Apple app stores earlier this year, it became more widely available.
Creating Worldwide Investment Hysteria on AI Funding
However, the hysteria that ensued was triggered by a follow-up research article that was released last Friday, the same day that President Donald Trump took office.
That research discussed another DeepSeek AI model, R1, which was substantially less expensive than an OpenAI model of the same name, o1, and demonstrated sophisticated “reasoning” abilities, such as the capacity to reconsider how it approached a mathematical issue.
DeepSeek Models are “Open Source”, What it Means?
Although the business hasn’t revealed the data it used for training, DeepSeek’s models are “open source,” which means that important components are freely accessible and modifiable by everyone. This sets it apart from rivals like OpenAI.
The feature of DeepSeek’s R1 model that has garnered the most praise, however, is what Nvidia refers to as a “perfect example of Test Time Scaling”—the process by which AI models successfully demonstrate their line of reasoning and then utilize that for more training without requiring them to be fed new data sources.
DeepSeek 50 Times Less Expensive Than The OpenAI o1 Model
Depending on the workload, the Chinese artificial intelligence company that develops open-source large language models claims that the chip limitations haven’t prevented them from delivering a model that is 20–50 times less expensive than the OpenAI o1 model.
The company claimed to have spent only $5.6 million to fuel its core AI model, compared to the hundreds of millions, if not billions, of dollars US companies spend on their AI technologies.
What is an Artificial Intelligence (AI) Model
A program that examines information to identify trends and provide predictions is called an AI model. The creation and application of an AI model is known as AI modeling.
AI modeling mimics human intellect and works best when given a variety of data sources. When an AI model is used within an organization, it may precisely resolve complicated problems with minimal operational costs. Modeling, training, and inference are the first phases in AI modeling.