By Sukanya Ganesh in AI — Feb 5, 2025

DeepSeek

DeepSeek’s rise is redefining AI, proving that efficient, open-source innovation can disrupt tech giants and reshape global power dynamics.

Photo by Solen Feyissa / Unsplash

About DeepSeek

Learn - a couple of courses to further your knowledge in AI

AI Jobs - a listing of fresh jobs related to AI

In Other News - a few interesting developments we're tracking

DeepSeek, a Chinese artificial intelligence (AI) startup founded in July 2023 by Liang Wenfeng, has rapidly emerged as a transformative force in the global AI landscape. Despite its recent inception, the company has developed AI models that rival leading chatbots, achieving this with significantly lower costs and resources compared to industry giants.

The Rise of DeepSeek

Released its AI Assistant, powered by the V3 model, which quickly topped the iOS App Store in the U.S.
Surpassed established competitors like ChatGPT in popularity.
Performs comparably to other leading AI models in answering questions, solving logic problems, and writing code.

Efficient AI Model Training

Utilized only 2,000 GPUs (Nvidia H800 series) to achieve performance similar to AI models from top tech firms.
Completed model training in about 55 days at a cost of $5.58 million.
Cost was approximately one-tenth of what U.S. tech giants typically spend on similar projects.

Open-Source Innovation

Adopted an open-source approach, allowing global developers to inspect, modify, and enhance its AI software.
Democratized access to advanced AI technology.
Encouraged widespread adoption and innovation across multiple industries.

Economic Impact

The release of DeepSeek’s R1 model triggered significant stock market declines.
Nvidia’s stock dropped by up to 18%, and major tech firms like Microsoft and Alphabet also suffered losses.
Around $1 trillion in value was wiped off American stocks, highlighting DeepSeek’s disruptive impact.

Global AI Competition

Challenged the dominance of U.S.-based AI companies.
Proved that cutting-edge AI development is possible outside traditional tech hubs.
Raised questions about the effectiveness of export restrictions on AI-related hardware to China.

DeepSeek's innovative approaches and rapid development have not only disrupted the AI industry but also reshaped perceptions of global technological leadership. Its success emphasizes the potential for efficient, open-source solutions to drive significant advancements in artificial intelligence.