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DeepSeek AI: How this free LLM is shaking up AI industry

DeepSeek AI: How this free LLM is shaking up AI industry

Author: Digit | Full Article: DeepSeek AI: How this free LLM is shaking up AI industry | Published: January 29, 2025

DeepSeek is a new player in the artificial intelligence (AI) field that is making waves by offering a powerful AI model at a fraction of the cost typically associated with such technology. Founded by Liang Wenfeng, who previously co-founded a hedge fund, DeepSeek has developed an open-source AI model called DeepSeek-V3. This model was trained using significantly fewer resources than its competitors, which has led to a dramatic drop in NVIDIA’s stock value, highlighting the potential for more affordable AI solutions.

The company’s approach focuses on using only the necessary computing power for each task, allowing them to train their model with just 2,000 NVIDIA GPUs instead of the usual 16,000. This innovative method has resulted in a model that some experts believe rivals established names like OpenAI’s ChatGPT. By embracing an open-source framework, DeepSeek is making advanced AI accessible to smaller companies and academic institutions that may not have the budget for expensive commercial AI services.

However, the rise of DeepSeek also raises questions about data privacy and potential compliance with Chinese regulations. While the company has gained popularity, especially in the U.S. market, there are concerns about the implications of using their technology. As the landscape of AI continues to evolve, DeepSeek’s success could signal a shift towards more cost-effective and open AI solutions, benefiting a wider range of users.

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