Unpacking the AI Model Causing a Stir

DeepSeek is a free AI-powered chatbot that resembles ChatGPT and is designed for tasks like coding and mathematics, reportedly matching the performance of OpenAI's o1 model. With a low development cost of $6 million, it efficiently uses less memory and avoids the high expenses associated with top-tier chips, making it a competitor to expensive models like GPT-4. DeepSeek's launch caused significant market impacts, with major stock drops in companies like Nvidia. Despite facing global scrutiny, including bans in countries like Australia and Italy over data privacy concerns, its innovative use of chain-of-thought techniques and efficient AI training methods have sparked debates on the future of AI development. Founded by Liang Wenfeng, who also leads a successful hedge fund, DeepSeek challenges traditional beliefs about the need for large budgets in AI, pushing forward the conversation about open-source research and US-China AI competition.