Η artificial intelligence (Ai) is evolving rapidly and now a new player (DeepSeek) has emerged and is causing disruption in the world of technology
The DeepSeek, it is one Chinese model Ai which quickly rose to the top of the download charts on the Apple Store. It was released on January 20 2024, and not only impressed tech enthusiasts, but also caught the attention of investors and industry leaders.
The success of the application has caused enormous concern – particularly among American technology companies, as it challenges the idea that only investments in expensive multi-million dollar equipment can lead to significant advances in artificial intelligence.
Her rise DeepSeek sparked discussions about the future of AI technology, the competitive landscape between the US and China, and the implications for major chip manufacturers such as Nvidia, which lost more than 16.9% of its market capitalization value in one day.
As the tech world watches with bated breath, the story of DeepSeek unfolds, revealing the potential impact it is bringing to the global AI technology industry.
What is DeepSeek?
The DeepSeek is a chatbot with artificial intelligence, similar to Chat GPT, specially designed to help users by answering questions and improving their daily lives. Available free on the Apple App Store, where it has gained immense popularity.
The underlying Ai model which uses is known as R1, and has an impressive number of parameters (670 billion), making it the largest model open source large language (open source model) to date. This scale allows the DeepSeek to perform complex tasks in mathematics, coding and reasoning, rivaling the capabilities of established models such as OpenAI's O1.
However, DeepSeek’s design also reflects the unique challenges of operating in China’s highly regulated environment. Like other Chinese AI models, DeepSeek is programmed to avoid politically sensitive topics. For example, when asked about the incident in Tiananmen Square in 1989, the app avoided providing details, stating: "Sorry, I can't answer this question. I'm an artificial intelligence assistant designed to provide helpful and harmless answers.».
However, despite these limitations, the creators of DeepSeek claim to have developed the model at a fraction of the cost which is usually associated with such advanced technology.
They claim that the total cost of building DeepSeek was approximately 6 million, which is in stark contrast to the billions spent by American companies operating in the AI space.
Its founder DeepSeek is said to have amassed a collection of Nvidia A100 chip, which have been banned for export to China since September 2022. By combining these high-performance chips with less advanced alternatives, the team DeepSeek managed to create a powerful AI model with a very low budget.
Who is behind DeepSeek?
Η DeepSeek was founded in December 2023 by Liang Wenfeng, who quickly became a notable figure in the artificial intelligence landscape. The Liang graduated from the University Zhejiang with degrees in electronic information engineering and computer science. However, his background is not limited to technology, as he also has experience in finance.
Ο Liang serves as CEO of High Flyer, one hedge funds that uses Ai for quantitative trading. Under his leadership, the High Flyer became the first quant hedge fund in China which gathered over 100 billion yuan (about $13 million) in 2019.
Liang’s vision for DeepSeek reflects a broader ambition for China’s AI sector. In a rare interview, he stressed that China cannot remain a mere bystander in the global tech race. He argued that the real divide between Chinese and American AI lies in originality versus imitation. His perspective Liang is that if Chinese companies can innovate, they can compete on the same level as their American counterparts.
Liang's claim that DeepSeek's success surprised many in Silicon Valley underscores a shift in perception of Chinese tech companies. They are no longer seen as mere imitators but as innovators capable of making meaningful contributions to the global AI landscape.
How are American companies affected?
Its appearance DeepSeek he's got caused a shock to the American technology industry, challenging the belief that only huge investments of many millions or even billions of dollars and top-of-the-line chips can lead to advances in artificial intelligence.
Ο Wei Sun, principal analyst AI at Counterpoint Research, noted that DeepSeek's success proves that cutting-edge AI models can be developed with limited resources. This revelation has raised questions about the viability of companies like OpenAI, which is valued at 157 billions of dollarsInvestors are now considering whether the OpenAI can maintain its innovative advantage while justifying its huge spending.
Financial markets reacted strongly to the rise of DeepSeek. In January 27 2024, The Nasdaq technology index retreated more than 3%, with significant losses suffered by chip manufacturers and data centers worldwide.
Η Nvidia, a leading chipmaker, suffered the most, with its share price falling 17% in a single day. Once the world's most valuable company by market capitalization, Nvidia saw its value drop from $3,5 trillion to $2,9 trillion, falling behind Apple and Microsoft.
This decline reflects broader concern among investors about the future of high-performance chips. If companies like DeepSeek can achieve similar results at a lower cost, then demand for expensive chips from Nvidia and other American chipmakers could fall sharply. This shift could have long-term implications for the semiconductor industry and the overall AI development landscape.
How is China reacting?
DeepSeek's rapid rise is a major victory for the Chinese government, which has long sought to establish its technological independence from the West. While the Communist Party has yet to issue an official statement, Chinese state media has been quick to highlight the impact of DeepSeek on US financial marketsReports indicate that Silicon Valley and tech giants Wall Street "are losing sleep" over the potential disruption brought to the global market by DeepSeek.
Experts believe that DeepSeek's success symbolizes a new era of technological leadership in China. Marina Zhang, an associate professor at the University of Technology Sydney, noted that the company's achievements are being celebrated as evidence of China's growing self-sufficiency in technology.
However, Zhang also warned that this wave of national pride could lead to "technological isolationism"As China continues to develop its technological capabilities, it may become increasingly resistant to collaborating with foreign companies."
This shift could further entrench the gap between the US and China in technology, raising concerns about the future of global innovation and collaboration.
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