What is DeepSeek and why did US tech stocks fall?
Briefly

DeepSeek, a burgeoning AI company from China, seeks to achieve artificial general intelligence with a significantly cost-effective model. Emerging from a university startup, the company has developed an AI architecture that offers a much lower cost-to-performance ratio compared to US giants like OpenAI and Meta. This efficiency is partly due to operational limitations imposed by US trade restrictions on computer chips, pushing Chinese researchers to innovate within constraints. The model has gained popularity for its capability to handle complex tasks, recently topping download charts in multiple regions, underscoring its growing impact in the AI landscape.
DeepSeek has emerged as a pivotal player in AI, focusing on a low-cost approach to create models that perform on par with established US counterparts.
The key innovation of DeepSeek lies in its unique architecture that significantly reduces memory usage, allowing for cheaper operation without sacrificing performance.
Read at www.theguardian.com
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