DeepSeek is a Chinese artificial intelligence (AI) startup that has recently garnered significant attention for its rapid advancements in AI technology. Founded in 2023 by Liang Wenfeng, a former hedge fund manager, the company has developed large language models (LLMs) that rival those of leading Western firms.
One of DeepSeek's notable achievements is the release of DeepSeek-R1, an AI model that matches the capabilities of OpenAI's most advanced versions of ChatGPT but was developed at a fraction of the cost. This model quickly became the top free app in the U.S. Apple Store, highlighting its widespread adoption.
DeepSeek employs a "mixture of experts" technique, which activates only the necessary computing resources for a given task, resulting in significant efficiency gains. This approach has allowed the company to develop advanced AI systems with lower computational costs compared to traditional methods.
The company's models are open-source, with their final code and technical details publicly available. This transparency has been praised within the tech community and poses a challenge to American enterprises that have invested heavily in proprietary AI technologies.
However, DeepSeek's rise has also raised concerns. The success of its cost-effective AI models has led to significant market reactions, including a substantial decline in the stock value of companies like Nvidia. Additionally, there are apprehensions about the potential for Chinese AI to set global standards and the implications for U.S. national security.
Despite these concerns, industry leaders like Microsoft CEO Satya Nadella believe that more efficient AI technology will benefit the overall industry. DeepSeek's advancements highlight the shifting dynamics in the U.S.-China AI race and prompt questions about the effectiveness of U.S. export controls on AI advancements.