- The firm says it developed its open-source R1 model using around 2,000 Nvidia chips, just a fraction of the computing power generally thought necessary to train similar programmes.
- This has significant implications not only for the cost of developing AI, but also the energy for the data centres that are the beating heart of the growing industry.
- DeepSeek is a Chinese artificial intelligence company that develops large language models (LLMs). Founded in 2023, it has quickly gained attention for its advanced AI models, such as DeepSeek-V3 and DeepSeek-R1, which rival other leading models like OpenAI's GPT-421.
- The recent panic in the U.S. was triggered by the release of DeepSeek's latest AI model, which is highly competitive yet significantly less expensive to develop compared to its American counterparts.
- This development led to a massive sell-off in U.S. tech stocks, with companies like Nvidia and Microsoft experiencing substantial losses34.
- The fear is that DeepSeek's low-cost, high-performance AI could disrupt the market dominance of established American tech giants5.
DeepSeek, which on Monday climbed to No. 1 on the Apple app store, claims to have built its base model for less than $6 million (versus the more than $100 million Altman has said it cost to build GPT-4).
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