Key takeaways
- Chinese AI Startup DeepSeek released its latest AI Assistant – DeepSeek Version 3.
- This tool is more cost-effective than OpenAI’s and Meta’s AI models, while being more efficient.
- Meta’s AGI team is in a panic while Trump warns that it’s a warning for US AI companies.
A new Chinese AI model has taken the world by storm. Chinese AI startup DeepSeek has just released the latest version of its open-source AI model – DeepSeek V3 isand superior to the latest ChatGPT 4.0 models, Llama3, or Claude AI models. In some areas it even exceeds its competitors.
As a cherry on top, its training costs and development costs are a fraction of those of its competitors. DeepSeek, a company that has built models from scratch for only $5.5Mis a giant in the AI and data center industry.
This new breakthrough has wiped out $1 trillion from the US stock market in one day. Nvidia’s stock was the worst affected – it dropped almost 17% within a single day. Investors in Nvidia saw $593B disappear into thin air— the largest market cap loss of any company on Wall Street. Nvidia’s entire business revolves around selling GPUs with 80-90% margins. DeepSeek, on the other hand, built its entire model around 2,00 Nvidia H800 GPUs.
DeepSeek has shattered the idea that AI is a capital intensive industry and only the biggest corporations can participate. According to reports, DeepSeek uses efficient computer techniques like a “mixture of experts” approachin order to lower costs. The AI chip industry may be in trouble now that the industry has realized similar results can also be achieved using a fraction of the resources.
One downside could be that the model will only be trained using data up until October 2023. This is only for the Web version. The app appears to have access to all the latest information.
What Does This Mean for US AI Giants? DeepSeek’s entry into the AI industry
has sent other players into a frenzy. According to an insider, the division of Meta that deals with generative artificial intelligence is in “panic” mode .
Engineers have been working frantically to dissect DeepSeek, and copy everything they can. I’m not exaggerating. Meta employee
Right now, the biggest concern of the management is the massive cost oftheir tools and the massive salaries that their “leaders”are drawing. This is because China has created an equally competent tool for a much lower price.
In a speech to a Republican retreat in which he praised DeepSeek’s technological breakthrough, President Donald Trump said that it should serve as a wake-up for American companies. OpenAI CEO Sam Altman’s response was a bit more calm. He also praised the company for delivering such a service at such a low cost. He also praised the company for providing such a service at such a low price and, in the endhe promised to speed up OpenAI’s releases . DeepSeek may seem to be the next big thing. It’s possible, given that it’s already the most downloaded free app in Apple’s app store. Its open-source
model makes its codes and technical information available to everyone. Collaboration could also help to speed up the process. There are still some obstacles. As an example, the has censored all topics that the Chinese government does not like. The question is whether this approach will work if China tries to become a global player.
Also, China has a bad relationship with many of its neighbours. We’ve all seen what happened with TikTok. Will DeepSeek survive in this environment or will it sink following this massive launch?
Add the Techreport to your Google News Feed.
Get all the latest updates, trends and insights delivered directly to your fingertips. Subscribe now!
Vlad is Tech Report’s Executive Editor. With over a decade of experience in tech content, he’s passionate about computer hardware, an advocate of online privacy, and strongly believes in the open-source, scarce-money nature of cryptocurrency. When he’s not working, he’s traveling with his partner and their cat, learning Python, or reading good books. He never owned a PC he did not build.
Our editorial policy at Tech Report is to provide our readers with accurate, helpful content. We only work with writers who are experienced and have specific knowledge of the topics they cover. This includes the latest technology, online privacy issues, cryptocurrencies, software and more. Our editorial policy ensures each topic is researched by our in-house editors. We adhere to strict journalistic standards and all articles are written by real writers.
