The rise of the Chinese AI chatbot DeepSeek to the top of the App Store has unsettled Silicon Valley, particularly as it reportedly achieved this feat with less than $6 million in development. In contrast, major Western AI firms, like OpenAI, have poured billions into creating their infrastructure. The news comes as tech leaders announced considerable investments in AI, raising eyebrows over whether effective AI solutions can be developed affordably. This potential shift could radically redefine the landscape of AI development and investment, with immediate impacts on companies like Microsoft and Nivida.
DeepSeek has surpassed ChatGPT, raising questions about cheaper AI development without the billion-dollar infrastructure typically required by Western models.
The emergence of DeepSeek highlights a potential paradigm shift in AI development, suggesting that high performance can be achieved with significantly lower investment.
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