Chinese AI development company DeepSeek is rapidly emerging as a hot topic in the tech industry and has also topped the App Store's free app rankings
In January 2025, Chinese AI development company
DeepSeek gets Silicon Valley talking | TechCrunch
https://techcrunch.com/2025/01/26/deepseek-gets-silicon-valley-talking/
DeepSeek is an AI development company based in Hangzhou, Zhejiang Province, China, and announced the 'DeepSeek-R1-Lite-Preview,' a large-scale language model specialized for inference, in November 2024. R1-Lite-Preview is a model that performs inference through 'chains of thought' and has the characteristic of being able to show the user various chains and 'thought' flows in response to user input and document the process.
In addition, in December, DeepSeek announced the large-scale language model 'DeepSeek-V3,' which has 671 billion parameters and, in some cases, outperforms GPT-4o. In January 2025, DeepSeek released the inference models 'DeepSeek-R1-Zero' and 'DeepSeek-R1,' trained based on DeepSeek-V3, as open source under the MIT license. DeepSeek claims that 'DeepSeek-R1' outperforms GPT-4 and Claude 3.5 Sonnet in benchmarks, and has performance equal to or better than OpenAI-o1-1217.
Chinese AI company releases 'DeepSeek R1', an inference model equivalent to OpenAI o1, under the MIT license that allows commercial use and modification - GIGAZINE
'Deepseek R1 is one of the most amazing and impressive breakthroughs I've ever seen,' said Marc Andreessen , a software developer and co-founder of venture capital firm Andreessen Horowitz.
One of the reasons DeepSeek is attracting attention is its low training costs. While major AI development companies spend hundreds of millions of dollars to train models, DeepSeek claims that it only cost $5.6 million to train one of its latest models.
Chinese company DeepSeek has also attracted attention for developing a high-performance AI model at a time when the United States is severely restricting the export of high-performance semiconductors to China. DeepSeek founder and CEO Liang Wenfeng reportedly told Chinese Premier Li Qiang at a meeting on January 20 that the US semiconductor export restrictions remain a bottleneck.
As DeepSeek has become more prominent in the AI field, many consumers are also trying out DeepSeek's AI. As a result, 'DeepSeek - AI' was ranked number one in the free app category on the App Store at the time of writing.
The rapid rise of the Chinese company DeepSeek has come as a shock to established AI developers, with a person claiming to be a Meta employee writing on the anonymity platform Blind that Meta's generative AI division was in panic mode, analyzing DeepSeek's models and trying to copy them as best as possible.
Neil Khosla, CEO of AI healthcare company Curai Health, said, 'DeepSeek is a national psychological and economic warfare campaign by the Chinese Communist Party to make AI less profitable in the US. They are lying about low costs to justify setting low prices.'
'China's DeepSeek appears to have built a groundbreaking AI model at a very low cost and without access to cutting-edge chips, which could be the biggest threat to the U.S. stock market,' said economic analyst Holger Zaepitz. 'This calls into question the usefulness of the hundreds of billions of dollars of capital investment being poured into the AI industry.'
On the other hand, some are welcoming the rise of DeepSeek. Garry Tan, CEO of venture capital firm Y Combinator, said, 'As training models become cheaper, faster and easier, the demand for inference (the actual use of AI in the real world) will grow and accelerate even more rapidly, ensuring the supply of computing to be used.'
Yann LeCun, chief AI scientist at Meta, argued that DeepSeek's rise should not be seen as 'China surpassing the United States,' but as 'open source surpassing proprietary models.' 'DeepSeek benefits from open research and open source (such as PyTorch and Meta's Llama). They came up with new ideas and built them on other people's research. Their work is public and open source, so everyone can benefit from it. That's the power of open research and open source,' he said.
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