A Chinese company called DeepSeek has surprised the world by creating a new artificial intelligence (AI) model that is challenging big U.S. tech companies.
The AI model is called DeepSeek R1. DeepSeek R1 works like ChatGPT. It is a popular chatbot that can answer questions and create text.
The big question however is:
Why is everyone talking about DeepSeek?
What makes DeepSeek special is that it was built much cheaper than similar AI models made by American companies.
At first, not many people noticed DeepSeek R1 because it was released on the same day as Donald Trump’s inauguration as U.S. President. But a few days later, it became the most downloaded free app in the U.S., even beating ChatGPT. Don’t forget that ChatGPT is owned by OpenAI. OpenAI is an American artificial intelligence (AI) research laboratory.
The reason why so many people are talking about DeepSeek is that it might change how AI is made. Right now, big tech companies like Microsoft and OpenAI spend billions of dollars on AI. They mainly spend huge resources in buying special computer chips from a company called Nvidia.
But DeepSeek has found a way to create a powerful AI model at a much lower cost. This means that companies might not need to spend as much money in the future to develop AI. That is wonderful!
Many tech leaders are paying attention. Sam Altman, the CEO of OpenAI said DeepSeek’s AI model is “impressive” and went on to say that it would push other companies to work harder. Microsoft CEO Satya Nadella said that cheaper AI could be helpful, but he warned that China’s fast progress in AI is something the U.S. should “take seriously”.
DeepSeek’s success is even more surprising because the U.S. government has banned China from buying best computer chips Nvidia since Nvidia is US based. Some experts believe this is the major reason that forced DeepSeek to come up with their new and creative ways to build AI without those Nvidia chips.
This news shocked investors, and on Monday, 27th January, 2025, Nvidia’s stock price went down by 17%. This means that the company lost a lot of money. Some people, including American billionaire Elon Musk, are of the view that DeepSeek might have secretly gotten access to the Nvidia chips they have been banned from purchasing. But Nvidia has come out to deny such allegations saying DeepSeek followed all the rules.
Tech investor Marc Andreessen compared DeepSeek’s success to Sputnik. Sputnik is the first satellite ever launched into space by the Soviet Union in 1957. At the time, the U.S. was shocked that another country had taken the lead in space technology.
Now, some people think the same thing is happening with AI, with China moving ahead faster than expected.
As the world watches, DeepSeek’s breakthrough could change the future of AI and make powerful AI technology available for much less money.
Have you tried DeepSeek yet? Get a feel of the new “kid on the block” on their official website.
