Recently, DeepSeek's inference model DeepSeek-R1 and open source model DeepSeek-V3 have attracted strong attention worldwide. Although these models have been released for some time, their influence has just begun to ferment on overseas social media platforms and Wall Street. On January 24, DeepSeek-R1 jumped to the third place in all categories of large models on the foreign large model ranking Arena, especially in the style control model (StyleCtrl) category, tied for first place with OpenAI o1. This achievement not only marks DeepSeek's breakthrough in the field of AI, but also triggered in-depth discussions on its potential impact worldwide.
DeepSeek's amazing technological breakthrough and huge cost advantage
The release of DeepSeek-V3 was particularly noteworthy because it successfully trained a 671 billion parameter model using only 2048 H800 GPUs at a cost of only $5.576 million. This cost is much lower than the training cost of other top models, such as GPT-4, which costs $1 billion. This cost-effectiveness not only demonstrates DeepSeek's technological innovation, but also hints at its potential profound impact on the AI hardware market. Manufacturers such as Nvidia are panicking when they see this news, which may trigger a sharp reduction in hardware demand.
US concerns about DeepSeek: potential rewriting of AI monopoly landscape
The United States' attention and concerns about DeepSeek are not groundless. The United States has long dominated the field of AI, especially through giant companies such as OpenAI and Google. These giants have been monopolizing GPU resources and launching an "arms race"-style massive computing power competition in the global technology community, leaving other technology companies with no hope of success.
However, the rise of DeepSeek may break this monopoly. First, DeepSeek's low-cost and high-efficiency model training method may subvert the existing AI hardware market. The computing power demand for AI model training has dropped drastically (equivalent to about 0.5% of the original), which will pose a severe challenge to the dominance of GPU suppliers such as NVIDIA. Second, DeepSeek's open source strategy may accelerate the popularization and application of AI technology around the world, further weakening the United States' control over the AI field.
Financial institutions such as JPMorgan Chase have also expressed their concerns. They believe that DeepSeek's success may trigger a reshuffle in the AI hardware market, which in turn will affect the global technology industry chain. This potential change is not limited to the technical level, but may also affect the economic and political fields, especially in the context of Sino-US technological competition.
DeepSeek’s Impact on the Crypto Market
The rise of DeepSeek not only has an impact on the AI field, but may also have a chain reaction on the crypto market. First, DeepSeek's low-cost and high-efficiency model training method may lower the threshold of AI computing power, allowing more companies and individuals to participate in AI development and application. This trend may promote the development of AI-related projects and technologies in the crypto market, such as decentralized AI computing platforms and AI-driven crypto trading algorithms.
Secondly, DeepSeek's success may trigger a reassessment of existing AI hardware suppliers, especially GPU giants such as Nvidia. This reassessment may lead to price fluctuations of assets related to GPU mining in the crypto market, such as cryptocurrencies such as Ethereum that rely on GPU mining. In addition, DeepSeek's technological breakthrough may accelerate the integration of AI and blockchain technology and promote the emergence of more innovative applications, such as AI-driven smart contracts and decentralized AI markets.
Cryptocurrency market future trends forecast
Based on the impact of DeepSeek, the cryptocurrency market may see the following trends in the future:
1. The rise of AI-related crypto projects: With the popularization of low-cost and high-efficiency AI models such as DeepSeek, more AI-related crypto projects may emerge. These projects may include decentralized AI computing platforms, AI-driven crypto trading algorithms, innovative applications of AI and blockchain integration, etc. Investors may increase their attention and investment in such projects, driving up the prices of related assets.
2. Fluctuation of GPU mining assets: DeepSeek's technological breakthrough may have a profound impact on the GPU market, especially challenging the dominance of GPU suppliers such as Nvidia. This impact may be transmitted to the crypto market, causing price fluctuations of cryptocurrencies that rely on GPU mining. For example, cryptocurrencies that rely on GPU mining, such as Ethereum, may face price adjustments, while other cryptocurrencies that do not rely on GPU mining may benefit.
3. Acceleration of the integration of AI and blockchain: DeepSeek’s success may accelerate the integration of AI and blockchain technology and promote the emergence of more innovative applications. For example, AI-driven smart contracts and decentralized AI markets may become important development directions for the future crypto market. This trend may attract more developers and investors to enter the crypto market and promote the overall prosperity of the market.
4. Adjustment of regulatory policies: With the popularization of AI technologies such as DeepSeek, governments may strengthen their supervision of AI and the crypto market. Such supervision may involve the development and application of AI models, trading and investment in the crypto market, etc. Changes in regulatory policies may have a significant impact on the crypto market, and investors need to pay close attention to relevant policy developments.
The rise of DeepSeek not only has a profound impact on the field of AI, but may also have a chain reaction on the crypto market. Its low-cost and high-efficiency model training method may subvert the existing AI hardware market, especially posing a challenge to the dominance of GPU suppliers such as Nvidia.
This change may promote the development of AI-related projects and technologies in the crypto market, but it may also cause price fluctuations in cryptocurrencies that rely on GPU mining. In the future, with the further integration of AI and blockchain technology, the crypto market may usher in more innovative applications and development opportunities. However, investors also need to pay close attention to changes in regulatory policies to cope with potential market risks.
Author: Tang Hua Banzhu
This article was originally published on Binance Square
