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DeepSeek R1 challenges AI norms with $6M investment

DeepSeek R1 challenges AI norms with $6M investment

GrafaGrafa2025/01/27 09:00
By:Liezl Gambe

The recent release of DeepSeek R1, an open-source artificial intelligence model, has disrupted established beliefs about AI development.

This model, developed by a Chinese startup, was trained with just $6 million, yet it performs comparably to leading AI models like OpenAI's ChatGPT o1.

Venture capitalist Nic Carter noted that DeepSeek's emergence challenges the assumption that China would only produce closed-source AI and diminishes Silicon Valley's perceived advantages.

Carter remarked that this development illustrates that OpenAI does not hold an unassailable position in the market.

The rapid deployment of DeepSeek R1 contradicts previous claims that China lagged behind the U.S. in AI advancements.

Despite U.S. restrictions on high-performance computing chips, Chinese firms have adapted by utilising domestic resources and cloud platforms to continue their AI development.

The U.S. imposed an AI chip embargo on China in October 2022, but this has not hindered innovation; rather, it has prompted companies like DeepSeek to optimise their resources more effectively.

President Trump has emphasised the importance of AI for U.S. global leadership, announcing a $500 billion initiative aimed at bolstering American AI infrastructure and creating jobs.

In contrast, the UK is also pursuing similar initiatives to enhance its competitiveness in the global AI landscape.

DeepSeek R1's performance on reasoning tasks has garnered attention, with benchmarks indicating it matches or exceeds those of established models while operating at a fraction of the cost.

Researchers are excited about the implications of this model for democratising access to advanced AI capabilities, particularly for those with limited resources.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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