DeepSeek, a Chinese A.I. app has disrupted the tech landscape by achieving significant outcomes with minimal investment, raising questions about the extensive funding raised by established A.I. companies like OpenAI and Anthropic. Investors, including those at Radical Ventures, have expressed concern over this shift, as DeepSeek’s efficiency counters the narrative that developing advanced A.I. requires massive financial backing. As venture capital firms have heavily invested in A.I. startups, DeepSeek's breakthrough may prompt a reevaluation of investment strategies in this fast-evolving sector.
"Mr. Jacobs explained to his investors that Radical Ventures had long invested in more efficient A.I. models, similar to the one made by DeepSeek."
"If a Chinese upstart can create an app as powerful as OpenAI's ChatGPT with barely any money, why did those companies need to raise so much cash?"
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