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On 27th January 2025 Nvidia the world leader in artificial Intelligence computing seen the biggest fall in its wealth due to a newly Chineseย AI startup Deepseek-R1.ย The Hangzhou-based AI startup, headed by a Chinese hedge fund manager, Liang Wenfeng, has created state-of-the-art AI models at a fraction of the cost used by OpenAI, Meta, and Google to create frontier models. With this, Deepseek has not only brought the stock market down, it has also made tech giants and investors question the rationale behind infusing billions of dollars into AI infrastructure to develop frontier AI models.ย
Now the debate is on that Deepseek is truely more effective than Open AI, Gemini or Meta AI, and what are the merits and demerits of Deepseek
Hangzhou, Chinaย basedย new AI startup established in 2023ย launched its flagship DeepSeek-R1 model in January 2025
Based in Hangzhou and funded by Chinese hedge fund High Flyer, DeepSeek was only established in 2023. Its flagship DeepSeek-R1 model, launched in January 2025, appears to showย comparable reasoning and mathematical skills with other leading rivals. But there are some key differences on how it developed.
Unlike OpenAIโs ChatGPT and Claude for example โ whose models, data sets and algorithms are secret โ DeepSeek is open source, meaning it is available for anyone to download, copy and build upon. Its code and comprehensive technical explanations are freely shared, enabling global developers and organizations to access, modify and implement.ย
By contrast, although Meta and Googleโs models are open to anyone to view, they are alsoย not seen as being truly open sourceย because the way users apply the models is restricted by licences and the training data sets arenโt made public.
Another key differentiator of DeepSeek is the cost to build. Some numbers suggest it wasย built for $5.6 million โ just 10% of the cost of Metaโs Llama. This has pulled into question whether the huge funding circulating around the AI market,ย in the US in particular,ย is as necessary as first perceived. Shares in Nvidia, which designs semiconductor technology powering AI,ย fell sharply at the end of January as a result.
The high electricity consumption related to AI is significantly driving up carbon emissions. DeepSeekโs approach could offer a path towards more sustainable AI scaling.
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By the end of January 2025, DeepSeek had overtaken ChatGPT as the mostย downloaded free app on the Apple App Store in the US. Many believe its rapid rise could be a significant step inย democratizing AI,ย allowing smaller companies, start-ups and individual developers to build on DeepSeek-R1.
DeepSeek-R1 and OpenAI O1 have been in an unspoken competition. Unlike regular AI models, which can only generate answers through data analysis, these highly intelligent AIs take their time to process information and make complex decisions.
They do not simply follow predefined rules to perform various required tasks; they apply a level of cognitive flexibility and understanding to their usage.
DeepSeek started tall, claiming its new Janus Pro7B beats existing giants, including Dall-E 3 and Stability AI. While this is a claim that tech stakeholders are still researching, DeepSeekโs innovation already stands strong due to the following:
DeepSeek R1 and DeepSeek Janus are breaking boundaries in various industries with their features and advantages. For instance, solving complex mathematical and empirical problems just became easier. However, the impact of this new technology is bound to go beyond the scientific industries.
The entertainment industry stands to gain massively from the various models of DeepSeek AI. People are already discussing its ability to write codes and analyse complex data. This is advantageous in creating gaming platforms and in the development of slots. For those looking to try the best free options,ย free slots on Slotozillaย will be the perfect choice. These demo slots offer the opportunity to experience these games before playing for real.ย This is why technological innovations are transforming โ and will continue to transform โ our understanding of the world and our lives and expanding the boundaries of what we thought was possible.
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