DeepSeek AI: A Chinese Competitor to OpenAI Shakes Up Tech World
A new Chinese-made artificial intelligence (AI) chatbot called DeepSeek has taken the tech world by storm, quickly becoming the most downloaded free app on the Apple Store. Released on January 20, 2025, it has impressed AI experts and caught the attention of investors and tech companies. In the wake of its sudden success, some tech stocks have taken a hit, with Nvidia losing nearly $600 billion of its market value in just one day.
What Makes DeepSeek Stand Out?
DeepSeek has raised eyebrows for several reasons. Unlike other top AI models, such as OpenAI’s GPT-4, DeepSeek claims to have been built at a fraction of the cost. The company behind DeepSeek says it used fewer advanced chips to build the model, which keeps costs low without sacrificing performance. This has led to speculation about how the company managed to create such a powerful tool while avoiding high production expenses.
DeepSeek’s sudden rise has also put a spotlight on the global competition for AI dominance, particularly between the US and China. The US government has imposed restrictions on the export of advanced chips to China, hoping to slow down China’s tech development. However, China remains determined to catch up, with President Xi Jinping placing AI at the heart of the country’s future technological ambitions. Start-ups like DeepSeek play a key role in China’s shift from traditional manufacturing to cutting-edge fields like AI, electric vehicles, and semiconductors.
The Features of DeepSeek
DeepSeek operates much like other AI chatbots, such as OpenAI’s ChatGPT, which are used for tasks like writing emails, summarizing text, and answering questions. These tools, known as generative AI, learn from large datasets and can generate new content based on what they’ve been trained on.
DeepSeek, specifically, is said to be as capable as OpenAI’s O1 model, which was released at the end of 2024. DeepSeek excels in areas such as mathematics and coding, offering advanced reasoning skills. The app is able to simulate human-like reasoning through incremental steps, making it capable of handling complex problem-solving tasks.
What sets DeepSeek apart from its competitors is that it reportedly requires less memory to perform tasks. This reduces operational costs, which is one of the key selling points for the app. Despite these advancements, the app is still free to download, making it accessible to a large number of users.
Censorship and Controversy
As with many Chinese AI models, DeepSeek is trained to avoid politically sensitive topics. For example, when asked about the Tiananmen Square massacre, DeepSeek responded with a polite refusal, stating that it could not provide an answer to that question. This approach reflects the censorship policies in China, where sensitive political topics are typically avoided in media and technology.
While censorship may limit DeepSeek’s ability to compete globally, the company has taken steps to ensure its AI models are trained on accurate data. However, an additional layer of safeguards prevents the AI from sharing certain information, especially regarding sensitive topics.
The Cost of DeepSeek’s Development
DeepSeek has been developed at a surprisingly low cost, with reports suggesting it only cost $6 million to train. In comparison, OpenAI’s GPT-4 model is said to have cost over $100 million to develop. Some experts speculate that DeepSeek’s ability to keep expenses down comes from its use of a large stockpile of Nvidia A100 chips, which have been banned for export to China since 2022. It’s believed that DeepSeek’s founder, Liang Wenfeng, gathered up to 50,000 of these chips, pairing them with cheaper, less advanced hardware to build an efficient yet powerful AI model.
DeepSeek’s Founder: Liang Wenfeng
DeepSeek was founded in December 2023 by Liang Wenfeng, who is also the CEO of a Chinese hedge fund called High-Flyer. High-Flyer uses AI technology for quantitative trading, analyzing financial data to make investment decisions. In 2019, High-Flyer became the first quant hedge fund in China to raise over 100 billion yuan, demonstrating Liang’s expertise in both finance and technology.
Liang’s background in both finance and computer science sets him apart from many AI entrepreneurs in the US, who often come from Silicon Valley. In a rare interview, Liang expressed his belief that China’s AI sector could no longer afford to be a follower of Western innovation. He stated that China needs to move beyond imitation and focus on originality if it hopes to lead in the AI space.
Global Reactions to DeepSeek
The launch of DeepSeek has sparked reactions worldwide. In the US, President Donald Trump called DeepSeek’s rise a “wake-up call” for American companies, urging them to focus on innovation and competition to maintain their global leadership in technology.
Meanwhile, experts have raised concerns about the app’s security and privacy. Australia’s science minister, Ed Husic, voiced doubts about DeepSeek’s handling of consumer data. “There are a lot of questions that will need to be answered in time on quality, consumer preferences, data, and privacy management,” he told ABC. “I would be very careful about that. These types of issues need to be weighed up carefully.”
DeepSeek’s popularity has also led to security issues, with the company reporting large-scale malicious attacks on the same day it became the most downloaded free app on the Apple Store. As a result, the company temporarily limited new registrations.
The Future of DeepSeek and Global AI Competition
With the success of DeepSeek, the world is now watching closely to see how the company will develop. Its low-cost approach, paired with advanced AI capabilities, could set a new standard for future AI development. As China continues to invest heavily in AI, DeepSeek may become a key player in the global competition for technological supremacy.
For now, DeepSeek remains a free-to-use app, providing users with access to powerful AI tools. However, as the app faces both opportunities and challenges in terms of censorship, privacy, and security, its future on the international stage remains uncertain. Only time will tell whether DeepSeek can maintain its rapid growth and continue to challenge established AI giants like OpenAI.
Tags: DeepSeek, Chinese AI, OpenAI, Artificial Intelligence, ChatGPT, Generative AI, Nvidia, AI Competitors, China AI, AI Censorship, Technology News, AI Security, Global Tech Race
Disclaimer: Above information have been compiled from various newspapers and is being published for information purpose only.
Leave a Reply