DeepSeek: The Chinese AI Startup Disrupting Global Tech
DeepSeek, a startup based in Hangzhou, China, has emerged as a significant player in the artificial intelligence (AI) landscape, challenging the dominance of U.S. tech giants like Google and OpenAI, Al Jazeera reported. Founded in late 2023 by Liang Wenfeng, DeepSeek recently released its AI model, DeepSeek-R1, which reportedly rivals the capabilities of established models while being developed on a fraction of the budget—less than $6 million.
The startup’s success has raised eyebrows, particularly after Nvidia, a leader in AI chip production, lost nearly $600 billion in market value following the announcement of DeepSeek’s model. Marc Andreessen, a prominent venture capitalist, referred to this moment as “AI’s Sputnik moment,” highlighting the implications for U.S. tech supremacy.
DeepSeek utilized approximately 2,000 Nvidia H800 chips, which are less advanced than those used by its competitors, to train its model. This raises questions about the necessity of high-end chips for effective AI development. Experts suggest that DeepSeek’s approach demonstrates that smaller firms can innovate without massive investments.
Liang expressed that his curiosity about AI drove the company’s focus on language as a fundamental aspect of intelligence. While DeepSeek’s performance is noteworthy, industry leaders like OpenAI’s CEO Sam Altman acknowledged the competition, emphasizing the importance of computing power in advancing AI capabilities.
As the AI landscape evolves, DeepSeek’s emergence signals a potential shift in the balance of power between U.S. and Chinese tech firms, particularly as it came on the heels of Trump’s announcement of a new $500bn venture to build infrastructure for artificial intelligence in the United States.
