China's DeepSeek launched an AI model that rivals leading U.S. startups while costing only a fraction, $6 million compared to the typical $100 million. This breakthrough has catalyzed a competitive atmosphere in the AI space, causing concerns among U.S. companies like Nvidia, which recently saw a massive drop in stock value. U.S. officials acknowledge DeepSeek's rapid advancements but claim the U.S. retains a slight lead. However, allegations by OpenAI regarding DeepSeek potentially copying its technology through data distillation may affect their standing in the industry.
DeepSeek's arrival shows that Chinese companies are "hot on our heels," but the U.S. maintains its leadership in AI, with a 3-6 month lead.
DeepSeek developed its AI for under $6 million in two months, significantly less than the $100 million cost for U.S. startups.
The release of DeepSeek's AI set off a race for dominance and caused Nvidia to lose almost $600 billion in market value.
OpenAI is investigating whether DeepSeek used its training data without permission, claiming they distilled knowledge from its models.
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