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DeepSeek was founded in 2023 and develops open-source AI models, meaning the developer community at large can inspect and improve the software. The app distinguishes itself from other chatbots like OpenAI’s ChatGPT by articulating its reasoning before delivering a response to a prompt.Though not fully detailed by the company, the cost of training and developing DeepSeek’s models appears to be only a fraction of what’s required for OpenAI or Meta’s best products.
It also calls into question the vast spending by companies like Meta and Microsoft – each of which has committed to capex of $US65 billion or more this year, largely on AI infrastructure – if more efficient models can compete with a much smaller outlay. as investors sold off companies like Nvidia and ASML that have benefited from booming demand for AI services.
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