Chinese start-up, DeepSeek, challenges Western AI companies

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The Chinese start-up DeepSeek has jolted the tech world with its claim of a powerful AI model that is cheaper to build than better-funded American rivals.

It reportedly matches or surpasses existing AI models in various benchmarks, including programming and reasoning.

It was developed for under US$10 million, significantly less than the billions invested by Silicon Valley companies. And unlike many U.S. tech companies, DeepSeek has made its model open-source, promoting transparency and accessibility. Also, DeepSeek achieved impressive results using fewer and less advanced chips than its competitors, demonstrating innovative approaches to AI development.

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Why have users been drawn to the DeepSeek version of AI?

DeepSeek caught on quickly. Within days of its release, it became the top-rated free app on the Apple App Store, surpassing ChatGPT.

DeepSeek has become attractive to users for several key reasons. First off, it offers a free AI assistant, making it accessible to a wide range of users. The app is also shown added appeal to some users who note that it adds more character to their writing.

Why has it caused a fuss in the broader world?

Its emergence proceeded to disrupt the stock market, causing significant drops in the value of AI-related companies like Nvidia. In a short period, the Chinese company’s success has reignited the AI race between China and the United States, challenging U.S. leadership in the sector.

Ironically, DeepSeek arguably makes advanced AI more democratically accessible to smaller enterprises and underfunded regions like Asia and Europe. This levels the playing field, allowing businesses in developing economies to compete globally. For example, affordable AI solutions can drive adoption of it in sectors such as healthcare, logistics, and manufacturing, where cost has historically been a barrier.

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As a result, DeepSeek’s cost-effective approach is forcing established players like OpenAI and Google to rethink.

What about informational bias?

The platform has been criticized for its apparent bias in handling certain topics, particularly those related to China. It has been observed to skip information about China’s President Xi Jinping while providing detailed information about other world leaders.

DeepSeek has also shown limitations in providing information about sensitive topics, especially those concerning China. For instance, it has been shown to provide less than meaningful responses to queries about China’s human rights record or the events of the Tiananmen Square.

Will it face the same obstacles as TikTok?

Recent reports about the program’s vulnerabilities, such attacks directed at DeepSeek’s platform, highlight risks related to cybersecurity. They could damage user trust and increase operational costs for security upgrades.

Moreover, as a Chinese company, DeepSeek is likely to face scrutiny from Western governments over data privacy and security concerns, similar to the ongoing concerns content manipulation and access to over sensitive user data that is occurring with TikTok.

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