Chinese startup DeepSeek has disrupted the AI industry with its cost-effective models DeepSeek-R1 and DeepSeek-V3, which rival OpenAI and Google’s technologies. Developed for just $6 million using older Nvidia H800 chips, these open-source models allow free usage and customization.

Key Highlights:

  1. Affordability: DeepSeek’s costs are significantly lower than OpenAI’s, revolutionizing cost-efficiency in AI.
  2. Availability: The models are open-source with an MIT license and are accessible globally via platforms like Hugging Face.
  3. Performance: DeepSeek’s R1 ranked third on Chatbot Arena, surpassing OpenAI models in some benchmarks.

Market Impact: The launch caused a 17% drop in Nvidia’s stock value and shook the U.S. tech market, raising questions about massive investments in AI. DeepSeek’s rise underscores shifting dynamics in the global AI industry, challenging U.S. dominance and signalling China’s increasing influence.

Source: CzechCrunch

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