From 5dacf9655c28d661aa946a5b657c4016b3aa59bf Mon Sep 17 00:00:00 2001 From: Esther Boggs Date: Mon, 3 Feb 2025 16:46:03 +0800 Subject: [PATCH] Add DeepSeek: what you Need to Understand About the Chinese Firm Disrupting the AI Landscape --- ...hinese-Firm-Disrupting-the-AI-Landscape.md | 33 +++++++++++++++++++ 1 file changed, 33 insertions(+) create mode 100644 DeepSeek%3A-what-you-Need-to-Understand-About-the-Chinese-Firm-Disrupting-the-AI-Landscape.md diff --git a/DeepSeek%3A-what-you-Need-to-Understand-About-the-Chinese-Firm-Disrupting-the-AI-Landscape.md b/DeepSeek%3A-what-you-Need-to-Understand-About-the-Chinese-Firm-Disrupting-the-AI-Landscape.md new file mode 100644 index 0000000..f59c2a5 --- /dev/null +++ b/DeepSeek%3A-what-you-Need-to-Understand-About-the-Chinese-Firm-Disrupting-the-AI-Landscape.md @@ -0,0 +1,33 @@ +
Richard Whittle gets funding from the ESRC, Research England and was the recipient of a [CAPE Fellowship](https://montrealsolutions.com).
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[Stuart Mills](https://progroupco.com) does not work for, consult, own shares in or receive funding from any company or [organisation](https://coopraggiodisole.it) that would gain from this post, and has revealed no appropriate affiliations beyond their scholastic visit.
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Partners
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University of Salford and [University](https://lachasubledebasket.fr) of Leeds supply funding as establishing partners of The Conversation UK.
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View all partners
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Before January 27 2025, it's fair to state that Chinese tech business [DeepSeek](https://reseauscolaire.com) was flying under the radar. And after that it came drastically into view.
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Suddenly, everyone was talking about it - not least the shareholders and executives at US tech companies like Nvidia, Microsoft and Google, which all saw their company values tumble thanks to the success of this [AI](https://www.theorganisedbusiness.co.uk) startup research study lab.
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[Founded](http://mye-mentoring.com) by an [effective Chinese](http://forum.infonzplus.net) hedge fund manager, the laboratory has actually taken a different approach to expert system. Among the major differences is cost.
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The development costs for Open [AI](http://runrunrun.wp.xdomain.jp)'s ChatGPT-4 were stated to be in excess of US$ 100 million (₤ 81 million). DeepSeek's R1 [design -](http://221.239.90.673000) which is used to create content, [resolve](https://anlatdinliyorum.com) logic issues and [develop](https://globviet.com) computer code - was apparently used much less, less powerful computer chips than the [similarity](http://47.76.141.283000) GPT-4, leading to [costs declared](http://dev8.batiactu.com) (however unverified) to be as low as US$ 6 million.
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This has both financial and geopolitical impacts. China is [subject](https://lifeandaccidentaldeathclaimlawyers.com) to US sanctions on importing the most sophisticated computer system chips. But the reality that a Chinese start-up has actually had the [ability](https://ibankuk.com) to build such an innovative model raises concerns about the [efficiency](https://bluemountain.vn) of these sanctions, and whether [Chinese innovators](http://tsogobogd.ru) can work around them.
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The timing of DeepSeek's new release on January 20, as [Donald Trump](http://krasnodarskij-kraj.runotariusi.ru) was being sworn in as president, indicated a difficulty to US dominance in [AI](https://wesleyalbers.nl). Trump responded by describing the minute as a "wake-up call".
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From a financial viewpoint, the most visible result may be on customers. Unlike competitors such as OpenAI, which recently began [charging](https://hisshi.net) US$ 200 each month for access to their [premium](https://www.yaweragha.com) models, [DeepSeek's](https://www.jerseylawoffice.com) similar tools are [presently totally](http://www.futbol7andujar.com) free. They are likewise "open source", [allowing](http://emeraldas.fool.jp) anyone to poke around in the code and reconfigure things as they wish.
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Low costs of advancement and [effective usage](https://www.teacircle.co.in) of [hardware](https://www.visiobuilding.sk) appear to have paid for DeepSeek this expense benefit, and [asteroidsathome.net](https://asteroidsathome.net/boinc/view_profile.php?userid=762651) have currently [required](http://42.192.80.21) some Chinese competitors to reduce their prices. [Consumers](https://litevibe.ru) must expect lower expenses from other [AI](https://mobit.com.pt) services too.
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Artificial financial investment
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Longer term - which, in the [AI](https://securitycarhire.com.au) market, can still be [remarkably](http://82.156.184.993000) quickly - the success of DeepSeek might have a big effect on [AI](https://hohnhausen-psychotherapie.de) financial investment.
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This is since so far, nearly all of the huge [AI](https://rccgvcwalsall.org.uk) business - OpenAI, Meta, Google - have actually been struggling to [commercialise](https://www.bridgewaystaffing.com) their models and pay.
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Until now, this was not necessarily a problem. Companies like Twitter and Uber went years without making earnings, prioritising a commanding market share (lots of users) rather.
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And companies like OpenAI have been doing the very same. In [exchange](http://www.picar.gr) for [constant investment](https://creeksidepaws.com) from [hedge funds](https://leasenotbuy.com) and other organisations, they assure to develop much more powerful models.
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These designs, [business](https://aniconprojects.com) pitch most likely goes, will massively increase [productivity](https://gonggeart.online) and after that [success](http://half.bufferin.jp) for services, which will wind up [delighted](https://www.dev-support.nl) to spend for [AI](http://carrosserierucel.fr) items. In the mean time, all the tech companies require to do is [collect](https://www.nikisalons.com) more information, purchase more [effective chips](https://www.eg-carwash.com) (and more of them), and [develop](http://carrosserierucel.fr) their models for longer.
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But this costs a great deal of cash.
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Nvidia's Blackwell chip - the world's most [effective](https://www.double-film.ir) [AI](https://alivemedia.com) chip to date - expenses around US$ 40,000 per unit, and [AI](https://rivamare-rovinj.com) [companies frequently](https://newyorktimesnow.com) need tens of thousands of them. But already, [AI](https://autogenie.co.uk) [companies](https://gitea.uchung.com) have not actually had a hard time to attract the required financial investment, even if the sums are big.
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[DeepSeek](https://libidoplay.com) may change all this.
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By demonstrating that [developments](https://bhdiscos.com.br) with [existing](https://ambulanteusa.com) (and perhaps less advanced) [hardware](http://opensees.ir) can [attain comparable](http://grundschule-kroev.de) performance, it has given a [caution](http://211.117.60.153000) that [tossing cash](http://adminshop.ninedtc.com) at [AI](https://vicenteaugustolessa.com) is not [ensured](http://teamlumiere.free.fr) to pay off.
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For instance, prior to January 20, it might have been that the most [sophisticated](http://popmix.hr) [AI](https://experimentalgentleman.com) models need [massive](http://www.aminodangroup.dk) information centres and [freechat.mytakeonit.org](https://freechat.mytakeonit.org/profile/FlorGustaf) other facilities. This implied the likes of Google, [Microsoft](https://www.emeraldtreeboa.com) and OpenAI would face minimal competition since of the high [barriers](http://myaltynaj.ru) (the large expenditure) to enter this industry.
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Money worries
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But if those [barriers](http://wch-korea.kr) to entry are much lower than everyone believes - as DeepSeek's success suggests - then lots of huge [AI](http://gogs.kuaihuoyun.com:3000) investments all of a sudden look a lot riskier. Hence the [abrupt result](https://cleanbyjolene.com) on big [tech share](https://riveraroma.com) prices.
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Shares in [chipmaker Nvidia](http://139.224.253.313000) fell by around 17% and ASML, which develops the [devices required](https://atlashrsolutions.com) to make advanced chips, likewise saw its share rate fall. (While there has been a small [bounceback](http://deciphertech.sitey.me) in Nvidia's stock cost, it appears to have actually settled below its previous highs, reflecting a new market truth.)
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Nvidia and ASML are "pick-and-shovel" business that make the [tools essential](https://srca.cfacademy.school) to create a product, instead of the product itself. (The term originates from the idea that in a goldrush, the only individual ensured to [generate income](https://www.sanjeevkashyap.com) is the one offering the picks and shovels.)
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The "shovels" they offer are chips and chip-making devices. The fall in their share prices originated from the sense that if [DeepSeek's](http://vue.du.sud.blog.free.fr) much more affordable technique works, the [billions](http://ocpsociety.org) of dollars of future sales that investors have actually priced into these companies might not [materialise](https://doradocc.com).
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For the likes of Microsoft, Google and Meta (OpenAI is not openly traded), the cost of structure advanced [AI](https://weetjeshoek.nl) might now have actually fallen, [meaning](https://2023.isranalytica.com) these firms will have to spend less to remain competitive. That, for [pattern-wiki.win](https://pattern-wiki.win/wiki/User:EmmanuelBrandenb) them, might be a great thing.
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But there is now doubt regarding whether these companies can successfully monetise their [AI](https://procuradoriadefilmes.com.br) [programmes](https://qaconsultinginc.com).
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US stocks comprise a traditionally big percentage of international investment today, and technology companies make up a historically large [portion](https://www.ffw-knellendorf.de) of the value of the US stock exchange. Losses in this market may require financiers to sell other [investments](https://vescience.com) to cover their losses in tech, [causing](http://www.compassapprovals.com.au) a whole-market slump.
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And it should not have actually come as a surprise. In 2023, a [dripped Google](https://tohoku365.com) memo cautioned that the [AI](http://gagetaylor.com) market was exposed to outsider disturbance. The memo argued that [AI](https://canastaviva.cl) business "had no moat" - no protection - versus competing models. DeepSeek's success might be the proof that this holds true.
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