DeepSeek, a Chinese AI startup, is sparking a worldwide discussion on the future of technology with its AI program outperforming ChatGPT to become the highest-rated app on the US App Store. The AI model, DeepSeek-R1, aims to challenge industry giants like OpenAI and Meta.
The company’s ability to maintain significantly lower costs more efficiently has been impressing the market and impacting the strategies of major players like Nvidia, Microsoft, Meta, and cryptocurrencies.
Analysts find it challenging to measure the impact DeepSeek has on current technology trends, leading investors to withdraw funds in uncertain situations, as reported by “Coindesk.” The correlation between cryptocurrencies and the Nasdaq index has influenced the value of major digital currencies, with bitcoin (BTC) experiencing a significant decline on Monday (27).
What does DeepSeek refer to?
Founded in China in 2023, DeepSeek started as a research division of High-Flyer, a quantitative fund worth $8 billion, before transforming into one of the most talked-about AI startups globally. Initially, its goal was to create effective AI models with a focus on fundamental research rather than prioritizing short-term gains like other industry frontrunners.
DeepSeek AI models like DeepSeek-R1 are created to manage intricate reasoning tasks and are already competing with models like OpenAI o1, as reported by the Wall Street Journal.
Differences
DeepSeek significantly cuts down on the expenses associated with training your models. For instance, DeepSeek-R1 was trained for around $6 million, whereas models like Meta’s Llama 3.1 required over $60 million for development, as reported by Nature.
The company utilizes technological innovation strategies, such as AI models that learn through trial and error and the Mixture-of-Experts Architecture (MoE), which activates only a portion of the model’s capacity for particular tasks, thus conserving resources.
The startup utilizes a semi-open capital model, enabling researchers to utilize their algorithms. This facilitates wider access to advanced AI and encourages increased collaboration within the international research community, enabling other professionals to enhance the system.
Cryptocurrencies decline.
Bitcoin dropped by 3.4% to $10,245 and Ethereum fell by 5.4% to $3,325 as of 10:24 Brasília time. In Brazilian real, bitcoin experienced a 3.3% loss, amounting to R$ 601,835, according to Cointrader Monitor.