DeepSeek AI is a Chinese company of Artificial Intelligence (AI). It has developed a cheaper AI chip than the American AI companies. In comparison to the way American companies developed AI models by investing huge amounts of money, it has challenged them by developing a cheaper chip.
It is a private company in China which was founded in July 2023 by Liang Wenfeng, a graduate of Zhejiang University, one of the largest universities in China. According to MIT Technology Review, Liang WenFeng funded this startup through his hedge fund. Now Liang has assets worth about $8 billion.
it’s Superiority Over Open AI:
it offers some distinct advantages over Open AI’s ChatGPT in certain areas, particularly in terms of specialized capabilities for advanced data analysis and deep learning models. While ChatGPT excels in generating human-like conversational text and assisting with creative tasks, DeepSeek AI is designed to dive deeper into complex datasets, providing more robust solutions for data mining, pattern recognition, and predictive analytics.
DeepSeek leverages advanced algorithms to analyze vast amounts of data quickly, which is particularly beneficial for users needing to extract actionable insights from large-scale, structured datasets. The tool is fine-tuned for tasks such as semantic search, anomaly detection, and trend forecasting, making it ideal for professionals in fields like finance, healthcare, and scientific research.
Its ability to parse through complex queries and data structures allows it to provide more precise, contextually aware responses in situations that require higher accuracy and depth.
In comparison, ChatGPT, while highly versatile in a conversational sense, focuses more on language processing and user interaction rather than deep analysis of raw data. DeepSeek AI, therefore, offers a more powerful alternative when the goal is to make data-driven decisions or uncover hidden insights within large data sets, while ChatGPT remains a better fit for general-purpose text generation and conversational engagement.
It’s Inferiority To OpenAI:
ChatGPT offers several advantages over DeepSeek, especially in areas related to natural language processing and conversational abilities. One of its key strengths is its ability to generate human-like text across a wide range of topics, making it ideal for tasks like writing, brainstorming, tutoring, and customer support.
Unlike DeepSeek AI, which is more focused on data analysis and specialized search functions, ChatGPT can engage in fluid, dynamic conversations, understanding nuances in language and responding in real-time.
Additionally, ChatGPT is user-friendly, accessible, and requires no specialized knowledge to use effectively. It can assist with creative tasks, answer questions, and explain complex concepts in simple terms, making it valuable for both casual and professional use.
Its adaptability across diverse industries, from education to entertainment, makes it more versatile for everyday tasks, while DeepSeek’s focus is primarily on advanced data-driven applications.
DeepSeek AI model shakes the US AI giants:
DeepSeek’s stir started in America when it launched its brand new AI model. In America, this model was described as better and cheaper than the model of the AI giants there. It has cost so little that the American giants are not believing it. This is also the reason for their trouble. US media outlets are talking about DeepSeek the most at the moment.
A paper by DeepSeek AI recently caught the attention of AI giants. The company said in that paper that DeepSeek-v3 training requires less than $6 million in computing power and can be trained with Nvidia H800 chips.
DeepSeek’s AI assistant app has overtaken its rival ChatGPT on Apple’s App Store in the US. This app is powered by DeepSeek-v3. It is now the top-rated free application on Apple’s App Store.
DeepSeek has raised doubts about the logic behind some US tech companies’ decision to spend billions of dollars in AI investment. Shares of several major AI players, including US-based OpenAI and Nvidia, have been directly affected.
The release of OpenAI’s ChatGPT in late 2022 caused a stir among Chinese tech companies. Then China began researching and developing its own AI-powered chatbots. Chinese search engine giant Baidu released the first Chinese AI model, ChatGPT-equivalent. But Baidu’s AI model was no match for ChatGPT.
Baidu’s AI model was no match for the AI capabilities of US companies. There was widespread disappointment in China. But now the quality and cost of DeepSeek AI models have turned the story on its head.
The Chinese startup has said that the two models, DeepSeek-V3 and DeepSeek-R1, which have been praised by Silicon Valley executives and US tech company engineers alike, are on par with the most advanced models from OpenAI and Meta. They are also cheaper to use.
According to a post on DeepSeek’s official WeChat account, DeepSeek-R1, released last week, is 20 to 50 times cheaper to use than the OpenAI O1 model, depending on the task.
DeepSeek’s success is also being closely watched in China’s top political circles. According to China’s Xinhua news agency, on January 20, the day DeepSeek-R1 was released to the public, founder Liang attended a closed-door meeting with Chinese Prime Minister Li Keqiang, attended by other Chinese business and high-level officials.
Liang’s presence at the meeting is a sign that Beijing is also going to take some steps to overcome US export controls and achieve self-reliance in strategic industries like AI.
DeepSeek AI Model effects on Nvidia:
it could pose a challenge to Nvidia by offering competitive data analysis and AI solutions that reduce dependency on Nvidia’s hardware. If it’s algorithms and platforms become more widely adopted, companies might prioritize software solutions over the need for advanced Nvidia GPUs, potentially weakening Nvidia’s market position.
This shift could result in slower growth for Nvidia, especially in sectors reliant on AI and machine learning. Consequently, investor sentiment may shift negatively, leading to a potential decline in Nvidia’s share price. If DeepSeek successfully disrupts Nvidia’s core business model, it could impact the company’s profitability and long-term stock performance.
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