DeepSeek, a newly founded AI chatbot backed by a billionaire and an $8 billion hedge fund, offers similar capabilities to OpenAI's GPT models for free. Despite US export controls limiting access to advanced AI chips, DeepSeek claims to have trained its model using less powerful hardware at a fraction of the cost. This has raised questions about its methods and sparked debate about China's rising AI prowess.
DeepSeek was founded in 2023 by Liang Wenfeng, a 40-year-old billionaire, and is headquartered in Hangzhou, Zhejiang, China.
Access to OpenAI’s o1 model comes at a premium of $200 per month. However, DeepSeek provides similar functions for free. Yet, DeepSeek claimed it successfully trained its model using Nvidia’s H800 chips for just $6 million, which is about a fraction of the billions spent by US companies like OpenAI. Alexandr Wang, the chief executive officer of Scale AI, suggested that DeepSeek may have secretly acquired more advanced H100 chips than it admitted.Ted Mortonson, a tech strategist at Baird, also questioned whether DeepSeek truly built such an advanced model using only the reduced-capacity H800 chips.by 18 percent, erasing over $589 billion from the company’s market valuation, while the S&P 500 fell by 2.3 percent and the Nasdaq 100 plummeted by 3.6 percent.
Business DEEPSEEK AI CHATBOT CHINA OPENAI EXPORT CONTROLS CHIPSETS
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chinese AI Startup DeepSeek Shakes Up Silicon Valley with Cheap, High-Performing ModelDeepseek, a Chinese AI startup, has generated shockwaves in Silicon Valley by developing a high-performing AI model called R1 at a fraction of the cost of US counterparts like OpenAI and Google. R1's capabilities rival those of ChatGPT, and its rapid popularity on Apple's app stores highlights the potential disruption to the US-dominated AI landscape. The news sent US tech stocks plummeting, with Nvidia, a key player in AI chip manufacturing, experiencing its biggest single-day decline in market value. Deepseek's success raises questions about US dominance in AI and the accessibility of groundbreaking AI technology.
Read more »
Trump Calls DeepSeek's Rise a 'Wake-Up Call' for US TechUS President Donald Trump has labeled the emergence of DeepSeek, a Chinese AI platform, as a 'wake-up call' for American industries. Despite US export controls limiting China's access to advanced GPUs, DeepSeek achieved success by training its latest model using Nvidia's H800 chips for a significantly lower cost. Trump acknowledged China's advancements while urging American companies to prioritize innovation and competition to retain their global AI leadership.
Read more »
‘They don’t have the money’ -- Elon Musk taunts OpenAI over $500bn AI projectElon Musk, the owner of X, has taken a jab at OpenAI following the announcement of the $500 billion Stargate Project, an initiative aimed at
Read more »
Ndume Criticizes Nigeria's Minimum Wage and Rising Cost of LivingSenator Ali Ndume expresses concern over the adequacy of the minimum wage in light of soaring food and fuel prices, calling for urgent reforms and a return to agriculture as a solution to the economic crisis.
Read more »
The Extravagant Cost of Grief: Nigeria's Debauched Funeral TraditionsThis article explores the financial burden and emotional toll of extravagant funeral practices in Nigeria, highlighting the societal pressures and cultural expectations that contribute to this issue.
Read more »
Obi Urges Tinubu to Cut Cost of Governance, Lead From the FrontFormer Anambra Governor and Labour Party presidential candidate Peter Obi calls on President Bola Tinubu to prioritize fiscal responsibility and address national issues.
Read more »