Deepseek R1, an AI model developed by a year-old Chinese startup, is making waves in the technology sector by nearly matching rivals like GPT-4 at a much lower cost. Founded by hedge fund manager Liang Wenfeng, DeepSeek has utilized relatively under-powered AI chips to develop its groundbreaking model while minimizing expenses. This development is surprising given the U.S. restrictions on high-power AI chip supplies to China. Marc Andreesen has heralded R1 as a significant moment for AI technology, drawing attention to the capabilities and potential competition from Chinese companies.
The new AI model was developed by DeepSeek, a startup that was born just a year ago and has somehow managed a breakthrough that famed tech investor Marc Andreesen has called AI's Sputnik moment.
R1 can nearly match the capabilities of its far more famous rivals, including OpenAI's GPT-4, Meta's Llama and Google's Gemini but at a fraction of the cost.
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