The rise of DeepSeek, an open-source large language model created by a Chinese hedge fund, signals a transformative moment in the AI market. Its ability to outperform established models like those from OpenAI, while being more cost-efficient, opens the door for smaller research labs to develop competitive AI solutions. The key to its success lies in the novel application of 'sparsity' within neural networks, allowing selective parameter activation that optimizes computing resources, potentially reducing operational costs significantly for AI development.
The success of DeepSeek demonstrates a major shift in AI, enabling smaller labs to create competitive models and enhance options in an expanding market.
DeepSeek's innovation comes from its ability to turn off and on large sections of neural network parameters, making computations more efficient and less costly.
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