Expert @_KarenHao on what Deepseek may mean for the future of journalism and Gen AI.
"DeepSeek will be very inspirational for AI researchers who now realise they can develop approaches that require significantly less money."
✍️ A piece by @Marina__Adamihttps://t.co/yoUP9oYKZz
— Reuters Institute (@risj_oxford) February 3, 2025
DeepSeek, a Chinese AI startup, has caused a stir in the stock market and the tech industry with its advanced chatbot app. The company, founded in Hangzhou in 2023, has attracted attention for its cost-effective approach to developing cutting-edge AI models. DeepSeek’s CEO, Liang Wenfeng, previously co-founded High-Flyer, one of China’s top hedge funds focusing on AI-driven quantitative trading.
The startup’s recent models were built using Nvidia’s lower-performing H800 chips, which are not banned in China. This sends a message that advanced AI research might not require the most expensive hardware.
📝 Which is the best AI assistant?
The Turing’s Robert Blackwell helped @guardian try out some leading chatbots, asking #AI tools the same questions to understand their differences.
Read the full article: https://t.co/it1txXdpXE
— The Alan Turing Institute (@turinginst) February 3, 2025
The company’s AI assistant became the most downloaded free app on Apple’s iPhone store, raising concerns among U.S. tech industry observers about DeepSeek’s ability to rival American companies in generative AI at a lower cost.
Bernstein’s Stacy Rasgon argues that while DeepSeek’s models are impressive, they are built on known technologies.
“While AI technology has provided hugely important tools… the business model depends on hype.”
Excellent piece on the significance of DeepSeek by @kenanmalik https://t.co/2YFyWRBr8E
— John Tasioulas (@JTasioulas) February 2, 2025
Last week, DeepSeek published a research paper about its new AI model, R1, which demonstrated advanced reasoning skills and was significantly cheaper than similar models from U.S. companies like OpenAI. This triggered widespread panic about competitive dynamics in AI tech.
“While privacy fears are justified, the main beef Silicon Valley has is that China’s chatbot is democratising the technology“
[DeepSeek has ripped away AI’s veil of mystique. That’s the real reason the tech bros fear it | Kenan Malik | The Guardian] https://t.co/gxZyqf80yC
— Norio Nakatsuji (@norionakatsuji) February 2, 2025
DeepSeek’s cost-effective AI impact
Venture capitalist Marc Andreessen likened DeepSeek R1 to AI’s “Sputnik moment,” warning that overregulation by the U.S. government could hinder American AI advancements and enable China to gain an edge. Gregory Allen from the Center for Strategic and International Studies suggests that the timing of DeepSeek’s announcement was politically motivated, aimed at highlighting the limitations of U.S. export controls.
Former President Donald Trump stated that DeepSeek’s breakthroughs could potentially save money in AI development, calling the news “positive” if the claimed advancements are accurate. DeepSeek’s success represents a significant victory for open-source AI models, according to industry experts. Seena Rejal from AI startup NetMind highlighted that DeepSeek demonstrates open-source AI is a viable, scalable alternative to closed models like OpenAI’s GPT.
However, there are dangers associated with open-source AI, such as cyber exploitation and data leakage. Cybersecurity firms have found vulnerabilities in DeepSeek’s AI models, and data processed by the company’s R1 model is sent to China, raising concerns about espionage. As US companies invest heavily in AI, DeepSeek’s chatbot app has drawn attention to the potential of open-source models to disrupt traditional business models in Silicon Valley.
The implications for the industry could be profound, potentially leveling the playing field for startups and innovators worldwide.