The Chinese AI startup DeepSeek has shaken the global tech landscape with its AI model, R1. Developed in
Hangzhou, R1 was created in just two months with an investment of 5.7 million euros. This model has outperformed established AI systems like OpenAI's ChatGPT, leading to a significant market impact, including a record stock market decline for Nvidia.
DeepSeek's success is attributed to its cost-effective and efficient approach, utilizing less advanced Nvidia hardware. This has alarmed US tech giants, prompting calls for increased support for open-source AI models to maintain competitiveness. Concerns over data privacy have also emerged, with many companies blocking DeepSeek due to potential data sharing with the Chinese government.
In response, OpenAI and other US firms are revising their strategies to counter DeepSeek's rise. They are exploring new partnerships and funding rounds to bolster their position. Meanwhile, DeepSeek continues to gain traction, with major cloud providers like Microsoft supporting its models. As the global AI race intensifies, DeepSeek's rapid ascent highlights the shifting power dynamics in the technology sector.
