DeepSeek, a Chinese AI company, has achieved remarkable success in just months by releasing a rival chatbot called DeepSeek AI. The company’s innovative approach, which utilized software tools and reasoning models at a fraction of the cost, sent shockwaves through the US stock market, wiping out $1 trillion.
Despite being banned from accessing the latest GPUs due to US sanctions, DeepSeek developed its AI using software optimizations. This feat has raised concerns about the importance of hardware in AI development, leading investors to reassess their priorities. However, DeepSeek is not stopping. The company plans to launch a major DeepSeek R2 reasoning model upgrade by May.
DeepSeek’s secret sauce lies in its unique company culture and business practices. Founder Liang Wenfeng created a research lab-like environment where employees work 8-hour days and are well-paid. This approach has led to rapid innovation, with analysts estimating DeepSeek pricing could be 20-40 times cheaper than ChatGPT tools.
The company’s commitment to employee satisfaction is reflected in its high turnover rate of senior executives from competitors like OpenAI. While the Reuters report may paint a rosy picture, it highlights the growing popularity of DeepSeek AI among Chinese companies and the government.
However, the Western world is not ready to accept DeepSeek AI just yet. Countries like Italy and South Korea have announced bans due to user data privacy concerns, while the US government is mulling a wider ban. The release of DeepSeek R2 by May will be closely watched, as it competes against ChatGPT, Gemini, and other established players in the market.
As the AI landscape continues to evolve, one thing is clear: China’s AI powerhouse DeepSeek will not go unnoticed for long.
Source: https://bgr.com/tech/we-finally-know-the-secret-sauce-behind-deepseeks-ai-breakthroughs-that-shocked-the-world