A new AI model from the Chinese startup DeepSeek has surpassed leading models from OpenAI, showcasing remarkable capabilities at a fraction of the cost. The R1 model, developed for about $6 million, rivals OpenAI's investment-heavy offerings and is cheaper for users, prompting concerns within the American tech industry. The backlash resulted in a drop in U.S. tech stocks. While doubts linger regarding the authenticity of DeepSeek's claims, the model is being viewed as a pivotal moment in the global AI race, potentially reshaping the competitive landscape between China and the U.S.
DeepSeek's R1 model, released last week, has stunned the American AI industry by outperforming OpenAI's leading models and highlighting China's potential in the global AI race.
DeepSeek's cheaper model raises questions about U.S. dominance in technology, as investors sold off American tech stocks following its rise in iOS app rankings.
Some American researchers are skeptical about DeepSeek's claims regarding the costs and chip usage behind its new R1 model, despite acknowledgment of its impressive performance.
The rise of DeepSeek is compared to AI's Sputnik moment, indicating a significant shift in the competitive landscape of global technology.
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