Chinese app DeepSeek hammers US tech stocks with cheaper open-source AI model

Chinese AI startup Deepseek is gaining attention in Silicon Valley, as the company seems to almost match the hype of catalbots like Apenai, but at a fraction of the development cost.

Deepseek has grown In the global app stores, since the app was released earlier this month, it has been downloaded 1.6 million times in the US, US, Australia, Canada, China, Singapore, US and UK unlike Ratgpt and AI- Unlike other major competitors, Deepseek is open source, which will allow developers to offer their own improvements to the software.

The company revealed the R1, a specialized model designed to solve a complex problem, on January 20, which “increased the global top ten performance” and much faster, faster, ai chips at a lower price than other models in the US. According to the Wall Street Journal.

Meta’s chief AI scientist, Ian Leung, took to social media to talk about the program and its rapid success.

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Chatbot software was developed by Chinese AI company Deepseek (Getty Images/Getty Images)

He pointed out In a post on the thread What stuck out to him most about Deepseek’s success was the strong threat posed by Chinese competition, but the value of keeping AI models open source so everyone could benefit.

“It’s not that China’s AI is ‘superior’ to the US, but that ‘open source models are superior to proprietary ones,'” Lekun explained.

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The new potential for open-source AI development has sent ripples through the stock market, causing some traders to sell shares in companies like NVIDIA, which develops the computer chips typically needed for brute-force AI courses.

In this photo description, the Openai logo is seen on a mobile phone screen with the chatgpt image in the background. (Photo illustration by IDREES ABBAS / SOPA IMAGES / LIPTROCKE VIA GATTY IMAGES / GATTY IMAGES)

Experts told the magazine Deepseek’s technology is still behind the action and Google. However, it is a close competitor, despite using less and less advanced chips, and in some cases missing the steps that we consider necessary.

On Saturday, the magazine reported that two of Deepseek’s models were ranked in the top ten by Chatbot Arena, a research group at the University of California, Berkeley that evaluates Chatbot performance.

Signing outside Meta headquarters in Menlo Park, California on Thursday, 2024. On February 1. (Photo by David Paul Morris/Bloomberg Via Getty Images/Getty Images)

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While Deepseek’s flagship model is free, the magazine reported that the company charges users who connect their applications to Deepseek’s model and computing infrastructure.

Fox Business’ Stepheny Price contributed to this report