The Chinese AI model, DeepSeek, less than a month into its launch, has outperformed all leading AI chatbots including ChatGPT, triggering panic across the tech world.
DeepSeek, a Chinese startup had released a free, open-source large language model in late December that it says took only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s, according to CNBC.
In a set of third-party benchmark tests, DeepSeek’s AI model outdid Meta’s Llama 3.1, OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in accuracy ranging from complex problem-solving to math and coding.
DeepSeek was founded in 2023 by Liang Wenfeng - co-founder of High-Flyer, a quantitative hedge fund focused on AI.
On Monday, DeepSeek launched its new model called R1 which took over OpenAI's ChatGPT as Apple's top downloaded app.
The DeepSeek R1 model has significantly enhanced the deep reasoning abilities of large-scale models through a multi-stage loop training approach and has demonstrated outstanding performance in tasks such as mathematics, coding, and natural language reasoning.
Notably, its breakthrough in reinforcement learning allows DeepSeek R1 to autonomously learn complex reasoning strategies through self-play and evolution, eliminating the need for large amounts of labeled data.
Moreover, DeepSeek R1's open-source nature creates opportunities for enhanced collaboration and innovation.
The craze around DeepSeek R1 and its other model DeepSeek V3 was so overwhelming that the Chinese startup was forced to limit the new user registration.
DeepSeek AI chatbot is in news not only because of its performance but also due to its affordable and cheap cost as compared to rivals.
The low-cost Chinese generative AI venture is thought to have matched US companies in its abilities but at a fraction of the cost.
This led to the massive fall in the share prices of American and Japanese AI firms simultaneously luring industries to adopt the latest Chinese AI launch including TuanChe, WiMi, MicroCloud Hologram and others.
DeepSeek's surprising run stormed the tech world days after U.S. President Donald Trump announced the launch of $500 billion AI project 'Stargate'.
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