NVIDIA’s recent stock plummet sparked discussions about the burgeoning AI arms race, particularly following the unexpected emergence of DeepSeek AI's R1 model. Founded by Chinese hedge fund millionaire Liang Wenfeng, DeepSeek shocked the West by developing a Large-Language Model (LLM) at a fraction of the cost and time compared to competitors like OpenAI and Google. The performance of R1, claimed to surpass established models, has transformed the competitive landscape, raising questions about the future of AI development and the cost efficiencies afforded by newer players.
Liang's Hangzhou-based DeepSeek AI lab had bested America's finest in front of the whole world, and they'd done it on a bootstrap budget.
DeepSeek's free, open-source model is reportedly sharper at reasoning than the pay-to-play offerings from OpenAI and Google.
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