The Chinese AI start-up DeepSeek made headlines with its generative AI bot, surpassing OpenAI's ChatGPT in downloads shortly after launch. While DeepSeek offers similar performance to established US models at significantly reduced costs through efficient use of resources, analysts caution against overreacting to the newcomer. Statements from industry experts suggest that the rapid growth of DeepSeek may deceive investors into believing traditional tech giants like Google and OpenAI will be sidelined, as they can quickly replicate DeepSeek's efficiencies in a more secure and mature manner.
DeepSeek's open-source AI model's impact lies in matching US models' performance at a fraction of the cost by using compute and memory resources more efficiently.
The market is incorrectly presuming this as a zero-sum game, suggesting that maybe we don't need to build data centers anymore, because DeepSeek showed us we can do more with less.
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