Dark Mode Light Mode
Dark Mode Light Mode

‘Cheap’ Chinese chatbot shocks AI world

1f3812a0 dc69 11ef b9fe 718d3d8b9e31 1f3812a0 dc69 11ef b9fe 718d3d8b9e31

Deepseek has surpassed Deepseek, the Chinese AI app Deepseek, to become the highest-rated free app on Apple’s App Store in the US, UK and China.

The app has risen in popularity since its launch in January, challenging the widespread belief that America is the untouchable leader of the AI ​​industry.

It’s powered by the open source Deepseek-V3 model, which its researchers claim was developed for less than $6 million—far less than the billions spent by competitors.

But this claim has been conceded by others in the AI ​​space.

Following the launch of Deepseek-R1 earlier this month The company bragged “Performs on par with” one of Openai’s ChatGpt Maker models – when used for tasks like mathematics, coding, and natural language reasoning.

Marc Andreessen described Donald Trump’s Silicon Valley advisor and advisor to Donald Trump “The Sputnik moment of artificial intelligence”referring to the first artificial satellite launched by the Soviet Union in 1957.

Advanced chipsets that train AI models such as ChatGpt and Deepseek.

But since 2021, the US government has expanded its restrictions on the sale of advanced chips to China.

In order to continue their work without a constant supply of advanced imported chips, Chinese AI developers have shared their work with each other and experimented with new approaches to technology.

This has led to AI models that require much less computing power than before. This also means that they cost much less than previously thought possible, which has the potential to further increase the industry.

Shares in US AI-related companies, such as Nvidia, Microsoft and Meta, fell on Monday morning – and the development hit European stock prices.

ASML, the Dutch chip equipment maker, saw its share price tumble more than 10% while shares in Siemens Energy, which makes AI-related devices, fell 21%.

“The idea of ​​a low-cost Chinese version was not necessarily from the introduction, so it does surprise the market a little bit,” said Fiona Cincotta, chief market analyst at Citi Index.

“So if you suddenly get a low-cost AI model, that will raise concerns about competitors’ profits, especially given how much they’ve already invested in more expensive AI infrastructure.”

Singapore-based technology equity consultant Vey-Sern Ling told the BBC that it could “potentially derail the investment case for the entire AI supply chain.”

But Wall Street banking giant Citi warned that while DeBsec could challenge the dominant positions of US companies like Openai, issues faced by Chinese companies could hinder its development.

“We estimate that in an inevitably more constrained environment, access to more advanced chips is an advantage,” the analysts said in a report.

Last week, a consortium of American technology companies and foreign investors announced Stargate project, The company that is putting $500 billion into AI infrastructure in Texas.

The company was founded in 2023 by Liang Wenfeng in Hangzhou, a city in southeastern China.

The 40-year-old, an information and electronic engineering graduate, also founded the hedge fund that backed Deepseek.

he It is said Build a store of Nvida A100 chips, now banned from export to China. Experts believe that this group – which some estimates put at 50,000 – led him to launch Deepseek, by pairing these chips with cheaper, lower-end chips still available for import.

Mr. Liang was recently seen at a meeting between industry experts and Chinese Premier Li Qiang.

In a July 2024 interview with China AcademyMr. Liang said he was surprised by the response to the previous version of the AI ​​model.

“We did not expect pricing to be such a sensitive issue,” he said.

“We were simply going at our own pace, calculating costs, and setting prices accordingly.”

Additional reporting by Darbil Jordan.

https://ichef.bbci.co.uk/news/1024/branded_news/a593/live/1f3812a0-dc69-11ef-b9fe-718d3d8b9e31.jpg

2025-01-27 11:14:00

Add a comment Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post
Tesla takes EU to court over tariffs on electric vehicles

Tesla takes EU to court over tariffs on electric vehicles from China

Next Post
Trump to reinstate service members discharged for not getting COVID 19

Trump to reinstate service members discharged for not getting COVID-19 vaccine