Explaining DeepSeek: The Chinese model's efficiency is scaring markets

AI News

Explaining DeepSeek: The Chinese model's efficiency is scaring markets
OpenaiOracleMicrosoft
  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 23 sec. here
  • 6 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

Business Insider tells the global tech, finance, stock market, media, economy, lifestyle, real estate, AI and innovative stories you want to know.

The bombshell that is China's DeepSeek model has set the AI ecosystem alight.The models are high-performing, relatively cheap, and compute-efficient, which has led many to posit that they pose an existential threat to American companies like OpenAI and Meta — and the trillions of dollars going into building, improving, and scaling US AI infrastructure.

R1 was built on top of V3 and the research paper released alongside the more advanced model doesn't include information about the hardware stack behind it. But, DeepSeek used strategies like generating its own training data to train R1, which requires more compute than using data scraped for the internet or generated by humans.This technique is often referred to as 'distillation' and is becoming a standard practice, Ambati said.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

BusinessInsider /  🏆 729. in US

Openai Oracle Microsoft Meta

United States Latest News, United States 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 US Tech Market with Cost-Effective AI ModelChinese AI Startup DeepSeek Shakes US Tech Market with Cost-Effective AI ModelA surprise advancement from a Chinese AI company, DeepSeek, sent shockwaves through the US stock market, particularly the tech sector, on Monday. DeepSeek unveiled its ChatGPT-like AI model, R1, capable of operating at a fraction of the cost of its Western counterparts. This development raises questions about the US tech industry's dominance and the future of AI development.
Read more »

Chinese Startup DeepSeek Shakes Up AI Race with Cheaper, Open-Source ModelChinese Startup DeepSeek Shakes Up AI Race with Cheaper, Open-Source ModelDeepSeek, a Chinese startup, has made waves in the AI industry with its cost-effective and open-source AI models, challenging the dominance of U.S.-based companies like OpenAI and Meta. Its DeepSeek-V3 model, trained on less powerful chips, rivals the performance of leading AI models while its open-source DeepSeek-R1 model offers a cheaper alternative. This development has sparked debate about the future of the AI race and the role of cost-efficiency in innovation.
Read more »

Chinese app DeepSeek hammers US tech stocks with cheaper open-source AI modelChinese app DeepSeek hammers US tech stocks with cheaper open-source AI modelDeepSeek, a new Chinese AI chatbot startup is receiving new attention from Silicon Valley after a surprising launch.
Read more »

Chinese AI Startup DeepSeek Challenges ChatGPT with Open-Source ModelChinese AI Startup DeepSeek Challenges ChatGPT with Open-Source ModelDeepSeek, a Chinese AI startup, is making waves in Silicon Valley with its open-source chatbot that rivals the capabilities of ChatGPT at a fraction of the cost. The app, released earlier this month, has been downloaded 1.6 million times in the US and topped app stores in multiple countries. Experts note that while DeepSeek's technology is still behind OpenAI and Google, its rapid development and performance using fewer, less powerful chips make it a significant competitor.
Read more »

Chinese AI Startup DeepSeek Rocks Silicon Valley with Open-Source ModelChinese AI Startup DeepSeek Rocks Silicon Valley with Open-Source ModelDeepSeek, a Chinese AI startup, has made a significant impact in Silicon Valley with its open-source large language model, R1, which outperforms leading American AI models despite using fewer and less powerful chips. The company's rapid progress has sparked debate about the future of AI development and the role of open-source technology.
Read more »

Chinese AI Startup DeepSeek Challenges US Giants with Open-Source ModelChinese AI Startup DeepSeek Challenges US Giants with Open-Source ModelDeepSeek, a Chinese AI startup, has gained significant attention in Silicon Valley for its rapid rise and the success of its open-source large language model, R1. R1's performance rivals leading US models despite being built with fewer and less powerful chips at a lower cost. The company's approach highlights the value of open-source AI and has sparked discussions about the future of the field.
Read more »



Render Time: 2025-08-29 15:05:02