China’s rapidly advancing AI startup, DeepSeek, has caused a stir in the tech world by showcasing AI models that rival the best chatbots while being far more cost-effective. Just over a year old, DeepSeek has already captivated industries by demonstrating impressive capabilities at a fraction of the usual development costs.
The company’s success challenges a long-held belief in the AI industry that greater computational power and energy usage are essential for advancing AI technologies. DeepSeek’s ability to deliver high-performing AI models without exponentially increasing costs could pave the way for more accessible and efficient AI solutions, potentially altering perceptions about future AI development requirements.
Source: https://www.bloomberg.com/news/articles/2025-01-27/what-is-deepseek-r1-and-how-does-china-s-ai-model-compare-to-openai-meta