DeepSeek News Highlights: Chinese ‘DeepSeek a wake-up call for US AI,’ US Press Secy quotes Donald Trump

DeepSeek News Live Updates: Chinese AI startup DeepSeek has made a rapid rise in the world of artificial intelligence with its V3 and R1 models. Not only can DeepSeek's models compete with their Western counterparts on almost every metric, but they are built at a fraction of the cost and trained using an older Nvidia chip.

DeepSeek recently overtook OpenAI's ChatGPT as the top free app on the Apple App Store in the US and a number of other countries. The free AI app is also expected to make a dent in the market share of the top US AI companies and could lead to significant price reductions.

Why is US worried about DeepSeek? 

DeepSeek's LLMs are built on much lower costs, challenging the ongoing belief that running AI models requires ever-increasing amounts of computing power. In a paper last month, DeepSeek researchers said that the V3 model used Nvidia H800 chips for training and cost less than $6 million - a paltry sum compared to the billions that AI giants such as Microsoft, Meta and OpenAI have pledged to spend this year alone.

The success of DeepSeek has also called into question the effectiveness of export restrictions on advanced AI chips, a policy introduced by the Biden administration to slow the growth of artificial intelligence in hostile countries.