#DeepSeekImpact

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⭕Why did the Chinese app Deepseek's R1 cause an earthquake?

👈 Investors woke up on Monday to the success of a relatively small Chinese player in the world of artificial intelligence. According to "Fortune" magazine, investors were terrified by a model that was allegedly trained on a small budget, outperformed GPT-4O, Llama 3.3-70B, and Alibaba's QWEN2.5-72B, and also came from a country that is supposedly behind the United States in artificial intelligence capabilities.. So why did the Chinese app cause an earthquake in the world of artificial intelligence?

👈 Deepseek's R1 application took two months to develop and less than $ 6 million to build, with old chips.

👈 In contrast, OpenAI, the creator of ChatGPT, was founded 10 years ago, and raised $ 6.6 billion in capital.

👈 Companies like OpenAI and Anthropic spend more than $100 million on computing power, relying on massive data centers filled with $40,000 GPUs.

👈 Hangzhou-based DeepSeek was born out of a Chinese hedge fund with $1.4 billion in assets under management as of 2019, according to the South China Morning Post. The fund spun off DeepSeek in 2023, making it an AI startup developing models and building AI products, with a small team of fewer than 200 people.

👈 OpenAI, by contrast, has about 4,500 employees.

Source: Yahoo Finance + Fortune