Chinese startup Deep Seek has disrupted the AI landscape with its AI Assistant, powered by the open-source DeepSeek-V3 model. Launched on January 10, it quickly became the top-rated free app on Apple’s US App Store, challenging the dominance of American AI giants like OpenAI’s ChatGPT. Remarkably, DeepSeek was developed at a fraction of the cost of its competitors, raising questions about US primacy in AI and the effectiveness of export controls designed to limit China’s access to advanced chip technology.
Deep Seek claims it trained its model for less than $6 million using Nvidia’s H800 chips. While this claim has been contested, the model’s impressive performance and cost-efficiency have startled global markets, with major tech firms like Nvidia, Microsoft, and Alphabet experiencing stock value declines amid fears of rising competition from low-cost Chinese AI models.
Deep Seek success reflects China’s ability to innovate within constraints, leveraging open-source technology and new AI approaches. Described as “AI’s Sputnik moment,” this breakthrough signals a potential shift in the global AI race. However, challenges like cyberattacks and chip import restrictions persist, highlighting a competitive landscape that could redefine the future of AI globally.
