ChatGPT's Chinese counterpart has created a furor in the AI sphere. What you need to know
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- ChatGPT's Chinese counterpart has created a furor in the AI sphere. What you need to know
Chinese artificial intelligence (AI) model DeepSeek has broken into the ranks of the most productive chatbots and competed with popular analogs such as ChatGPT and Gemini. The advantage of the development was the fact that it is many times cheaper than other similar technologies and is open source. What is known about the sensational novelty from China - in the material "Izvestia".
What is DeepSeek
- The DeepSeek platform is developed by the company of the same name, which was founded in 2023 in Hangzhou. Its owner is a Chinese hedge fund High-Flyer, focused on the use of AI in the development of algorithms for securities trading. Already the first developments of the company attracted the attention of specialists with its efficiency and cheapness in comparison with American competitors from OpenAI and Google.
- In December 2024, the DeepSeek-V3 model was released, followed a month later by a more advanced version, DeepSeek-R1. The chatbot is available to users around the world in both mobile app and web page formats. The model is open source, which developers are free and free to explore.
- According to the developers, DeepSeek is capable of analyzing big data, processing natural languages, recognizing objects in images and videos, engaging in forecasting and modeling, automating routine processes in finance, trade, education, logistics, and medicine. It is claimed that its performance is comparable to OpenAI o1 - the latest development of OpenAI, which created ChatGPT.
What is the advantage of DeepSeek
- The DeepSeek-V3 development budget was only $5.58 million, and the machine learning period lasted 55 days. This is incomparably better performance than its competitors - typically, AI investments run into the hundreds of millions of dollars. DeepSeek's processing price is also extremely low - $0.27 per million incoming tokens versus $2.5 for ChatGPT-4o (the predecessor of OpenAI-o1).
What are tokens in AI
- Users and developers are still arguing about how effective the Chinese AI model is. The consensus is that if DeepSeek is inferior to its competitors in some respects, its low production cost overrides all other disadvantages. According to Chatbot Arena's chatbot rankings, DeepSeek-R1 is already ranked fourth in terms of performance, behind only two developments from Google, as well as ChatGPT-4o.
- It's important to stipulate that China is under U.S. sanctions on AI and should not receive chips and hardware to develop its own products. However, this did not prevent the small, by the standards of even Chinese tech corporations, company from making a breakthrough in its industry.
How DeepSeek responds to the query "How DeepSeek is better than ChatGPT for a Russian user, the answer is within 500 characters".
What impact DeepSeek has already had
- Another indicator of DeepSeek's success is that its app has become the most downloaded app in the US App Store, surpassing ChatGPT. This leap occurred just seven days after the release of DeepSeek-R1. Amid the news, OpenAI announced that the new OpenAI o3 mini would be free, while subscriptions for all other company products cost $200 per month.
- On January 27, there was a drop in technology stocks that missed the ascent of DeepSeek. Futures on the Nasdaq 100 index fell 3.2 percent, while the S&P 500 fell 1.9 percent. Shares of chip makers such as Nvidia and ASML Holding lost about 10%. Securities of Microsoft, Qualcomm and ARM also suffered losses. At the same time, Chinese companies began to grow - IT company Merit Interactive, which announced the integration of DeepSeek in its processes, added 20% at once.
