DeepSeek vs competitors

A Chinese AI startup, DeepSeek, has introduced an AI model that is on par with the best in the market, such as ChatGPT by OpenAI, but it was created in a shorter time and at a lower cost. The development also raises important questions about whether large-scale investments in AI infrastructure are actually necessary or if more prudent designs like DeepSeek will become the norm. One of the most striking aspects of DeepSeek’s achievement is its budget. Some of the big AI players like Google, OpenAI, and Meta have spent billions of dollars developing their models whereas DeepSeek was able to create an AI system with the same level of performance for $5.6 million. The possibility of creating high-quality AI at lower costs means that AI investment will not be centralized in a few large corporations, which will lead to a more fragmented market with many competitors. Nvidia, the company that builds the GPUs that are used largely in today’s AI development, has lost about $600 billion in market value according to reports due to concerns that cheaper forms of AI such as DeepSeek could reduce the need for its expensive processors. The effects of DeepSeek’s growth are not only felt in the stock market but also in the geopolitical and regulatory level. Read more in our articles including "China AI DeepSeek Disrupts Industry with New Model" and "OpenAI expands ChatGPT apps to include Apple Music".