10 Key Facts About Chinese AI Startup DeepSeek

DeepSeek, a Chinese AI startup, is quickly becoming famous for its affordable AI technology, which challenges big US companies like Nvidia and OpenAI. 

This has caused big changes in the market, especially with Nvidia losing a lot of its market value.

Quick Rise 

DeepSeek is becoming well-known in the AI world by creating cheaper AI models that use less power and data. This allows them to offer powerful AI tools at a lower cost compared to other companies.

Market Impact 

DeepSeek recently released a free AI assistant that quickly became more popular than ChatGPT in the US App Store. This success has led to concerns about a possible price war in the AI industry, which could change how much companies are willing to pay for high-tech setups.

Founding and Goals 

Liang Wenfeng, who started DeepSeek, is also the co-founder of High-Flyer, a Chinese hedge fund that heavily invests in AI. DeepSeek is part of his broader goal to develop Artificial General Intelligence (AGI), a type of AI that can think like humans.

Cost-Effective Operations 

DeepSeek operates at low costs. For instance, they developed their DeepSeek-V3 model for less than $6 million, much cheaper than what similar US projects cost. This makes DeepSeek an attractive option in the market.

Impact on Investors 

DeepSeek’s growth has worried investors, especially affecting Nvidia’s stock. Investors are concerned that cheaper AI models from DeepSeek could hurt the profits of established US tech companies.

Changes in Computing Needs 

DeepSeek’s models suggest that the demand for high-end computing, like GPUs, might decrease. This challenges the current trend of heavy investment in these technologies, which have not yet provided clear benefits proportional to their cost.

Benefits for Smartphones 

DeepSeek’s efficient AI models could improve smartphones, allowing more phones to have advanced AI features without needing expensive parts.

Bright Future for Chinese AI 

Experts believe that DeepSeek could lead to a bright future for AI in China. If DeepSeek’s methods are successful on a large scale, they could make AI cheaper and faster to spread, bringing us closer to having AI that can perform many human-like tasks.

Security Issues 

As DeepSeek became more popular, it faced a cyberattack that temporarily shut down its website, showing the challenges that come with sudden success.

Reactions from Around the World 

DeepSeek’s rise has caught the attention of people like former US President Donald Trump, who sees it as a wake-up call for American companies to stay competitive. OpenAI’s CEO, Sam Altman, praised DeepSeek’s model but noted that OpenAI would continue to lead with better technology.