Chinese AI Chatbot DeepSeek Disrupts the Industry
The Chinese AI chatbot DeepSeek has caused waves in the market with its groundbreaking claims. Powered by the open-source DeepSeek-V3 model, the chatbot was reportedly developed for under $6 million (£7.5m)—a fraction of the billions invested by its global competitors. However, this figure has been met with skepticism by others in the AI community.
Innovation Through Open Source
According to its researchers, DeepSeek leverages existing technologies and open-source code—freely accessible software that can be modified or distributed by anyone. This approach has significantly reduced costs and demonstrated the potential of developing AI models on a tighter budget.
A Response to US Export Restrictions
DeepSeek’s rise comes amid growing tensions between the US and China, particularly regarding the restriction of advanced chip technology essential for powering AI systems. In response, Chinese AI developers have adopted innovative methods, sharing resources and exploring new approaches to reduce dependency on imported chips.
These efforts have led to AI models that require substantially less computing power than before. Not only do these models lower costs, but they also challenge traditional industry assumptions, potentially reshaping the competitive landscape.
The Founder of DeepSeek
DeepSeek was founded in 2023 by Liang Wenfeng, a graduate in information and electronic engineering, in the city of Hangzhou, southeastern China. Mr. Liang is also the founder of a hedge fund that financed DeepSeek’s development.
Before the US export ban on Nvidia A100 chips, Mr. Liang reportedly stockpiled an estimated 50,000 units of the high-performance processors. By combining these with more affordable, lower-end chips still available for import, he successfully launched DeepSeek.
A Rising Industry Leader
Mr. Liang’s work has brought him to the forefront of China’s AI development. He was recently seen at a high-profile meeting with Chinese Premier Li Qiang, discussing advancements in AI technology.
In a July 2024 interview with The China Academy, Mr. Liang expressed his surprise at the reaction to an earlier version of the DeepSeek AI model, which had already demonstrated significant potential.
A New Era for AI Development
DeepSeek’s emergence underscores the ingenuity and adaptability of Chinese AI developers amid challenging circumstances. By prioritizing cost-effective solutions and collaboration, they are not only defying limitations but also driving innovation in the global AI industry.
