DeepSeek, a Chinese AI startup, surprised the tech industry with the release of its flagship model R1 on January 20, quickly reaching the top of the Apple App Store's Free Apps Chart. Built using about 2,000 Nvidia H800 chips for under $6 million, DeepSeek's ambitious project competes with heavyweights like OpenAI, Google, and Meta, all of whom have invested billions in more advanced technology. With the inability to access cutting-edge H100 chips due to U.S. sanctions, DeepSeek's performance challenges the notion that only well-funded companies can lead in AI development.
DeepSeek has rapidly risen in the AI landscape with its R1 model, challenging established players like OpenAI and Meta despite limited resources and technology.
The success of DeepSeek's R1 model demonstrates that with less capital and older technology, smaller firms can still compete effectively in the AI market.
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