A wave has been made this week as DeepSeek, an AI chatbot app from a Chinese AI lab, dominates the Apple App Store charts. DeepSeek’s technologically advanced AI models have activated discussions around the AI competition globally and the sustainability of AI chips demand. But what is the story behind DeepSeek’s fast rise to fame?
The Birth of DeepSeek
DeepSeek initially started as an offshoot of High-Flyer Capital Management, a Chinese quantitative hedge fund relying on AI for trading insights. High-Flyer, co-founded by AI devotee Liang Wenfeng, formed DeepSeek in 2023 as a separate AI research lab. Since its launch, despite challenges from U.S. export hardware restrictions, DeepSeek has created its own data centers for model training.
Setting the AI Pace
Innovation began with the unveiling of DeepSeek’s initial models in November 2023. However, the standout moment arrived with DeepSeek-V2’s release in spring 2024, leading to a price and value upheaval for AI models in domestic competition. Enhanced further with DeepSeek-V3 and DeepSeek’s R1, its models have shown superior performance at a reduced cost.
The Impact of Controversy
While boasting high-level efficiency and performance, DeepSeek’s models face scrutiny due to their development under China’s internet regulator rules. These regulations shape the responses of DeepSeek’s chatbots to reflect ‘core socialist values,’ which can limit certain discussions.
Disrupting the AI Market
DeepSeek’s products and services greatly undercut market prices, all while providing high-quality models. This drastic shift has caused a stir in the AI community and impressed developers far and wide. Despite some skepticism surrounding DeepSeek’s reported figures, its models’ proliferation attests to their success. The future, however, remains speculative as foreign regulations and influences become more of a concern.
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