Back
PremiumDeepSeek 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.
As the social media platforms and the stock markets are buzzed with the popularity of the new AI company DeepSeek, a report by Bernstein stated that DeepSeek looks fantastic but not a miracle and not built in USD 5 million.
It stated that "we believe that DeepSeek DID NOT "build OpenAI for USD 5M"; the models look fantastic but we don't think they are miracles; and the resulting Twitter-verse panic over the weekend seems overblown".
Almost AUD 1 trillion (USD 600 billion) was wiped off the value of artificial intelligence microchip maker Nvidia overnight on Monday, when a little-known Chinese startup, DeepSeek, threatened to upend the US tech market.
While Nvidia suffered the biggest one-day loss in sharemarket history, other tech giants – Microsoft, Alphabet and Amazon, who are investing heavily in competing AI tools including ChatGPT and Gemini – were also hit.
Investor sentiment toward artificial intelligence and big tech has taken a hit following the initial success of China-based DeepSeek's large language models, V3 and R1.
A report by UBS highlighted that these models are reportedly trained at significantly lower costs, offering deep discounts on inference, raising questions about the high capital expenditure (capex) intensity of established tech giants.
The report said, "Market sentiment on AI and big tech has turned negative following the initial success of China-based DeepSeek's V3 and R1 large language models."
US Press Secretary Karoline Leavitt while talking about DeepSeek, a Chinese artificial intelligence company that develops open-source large language models, said that as per US President Trump, this is a wake up call for American AI.
"The President was asked about DeepSeek last night on Air Force 1 when he gaggled for the third or fourth time throughout the weekend with members of the traveling press corps. The President said that he believes that this is a wake-up call to the American AI industry. The last administration sat on their hands and allowed China to rapidly develop this AI program," she said.
DeepSeek News Live: Shankar Sharma, founder of GQuant and FirstGlobal, sparked controversy on X after praising China’s structural edge over the US, implying the global rise of Chinese AI platform DeepSeek.
In his post, Sharma criticized American figures like Trump, Musk, and Andreessen, urging the US to “become humble." While some supported Sharma’s boldness, others criticized his comments as divisive, questioning whether his negative stance on the US was based on reason or personal bias. To read more, click here.
DeepSeek News Live: OpenAI has unveiled ChatGPT Gov, a customised version of its AI model designed for U.S. government agencies. Announced via a blog post on Tuesday, the tool allows secure deployment on Microsoft Azure commercial cloud and includes advanced features from ChatGPT Enterprise, such as custom GPTs. OpenAI highlighted that ChatGPT Gov is tailored to meet government-specific requirements, adhering to strict usage policies for ethical and responsible AI deployment.
The launch coincides with a statement from OpenAI CEO Sam Altman, who indicated that the company would accelerate certain product releases. Writing on X, Altman’s comments come amid heightened competition in the AI sector, particularly following the emergence of DeepSeek, a Chinese AI startup. Read more by clicking here.
DeepSeek News Live: Venture capitalist Marc Andreessen has called the launch of DeepSeek’s open-source AI model "AI's Sputnik moment," signalling a transformative shift in technology. The groundbreaking development has drawn global attention, with many industry experts agreeing that this could be a pivotal moment in AI’s evolution.
DeepSeek News Live: In a recent CNBC interview, Alexandr Wang, CEO of Scale AI, claims that DeepSeek holds over 50,000 NVIDIA H100 chips, which they cannot openly discuss due to US export restrictions.
Wang’s comments shed light on the growing tension around AI tech and semiconductor exports, particularly to China. The revelation has sparked debates on the global AI race, with Elon Musk weighing in on the issue. Read more about it - (Click here)
DeepSeek News Live: Chinese AI chatbot DeepSeek has gained global attention for competing with Western rivals at a lower cost but faces criticism for dodging sensitive topics. Like its domestic counterpart, ERNIE Bot, DeepSeek adheres to China's official narratives, avoiding controversial issues. When asked about the 1989 Tiananmen Square crackdown, it refused to answer, citing programming limitations on sensitive topics. On Xinjiang, it briefly acknowledged human rights abuse allegations before replacing responses with vague statements. Read more in detail - (click here)
DeepSeek News Live: Luke de Pulford, Executive Director of the Inter-Parliamentary Alliance on China in a post on X (formerly Twitter) wrote, “Just fyi, @deepseek_ai collects your IP, keystroke patterns, device info, etc etc, and stores it in China, where all that data is vulnerable to arbitrary requisition from the State"
DeepSeek News Live: In a post on X, Srinivas wrote, “There’s a lot of misconception that China “just cloned" the outputs of openai. This is far from true and reflects incomplete understanding of how these models are trained in the first place. DeepSeek R1 has figured out RL finetuning. They wrote a whole paper on this topic called DeepSeek R1 Zero, where no SFT was used. And then combined it with some SFT to add domain knowledge with good rejection sampling (aka filtering). The main reason it’s so good is it learned reasoning from scratch rather than imitating other humans or models."
DeepSeek News Live: In a post on X, Clement Delangue wrote, "It's been released just a few days ago and already more than 500 derivative models of @deepseek_ai have been created all over the world on @huggingface with 2.5 million downloads (5x the original weights).
The power of decentralized open-source AI!"
DeepSeek R1 News LIVE: DeepSeek is available as a free app in both the Apple and Google app stores. The Chinese company's latest AI models can also be accessed via its website chat.deepseek.com.
However, DeepSeek announced on Monday that it was temporarily halting registrations due to a large-scale malicious attack on its services.
DeepSeek R1 News LIVE: In a post on X, venture capitalist Marc Anderseen wrote, "DeepSeek R1 is one of the most amazing and impressive breakthroughs I've ever seen - and as open source, a profound gift to the world,"
DeepSeek R1 News LIVE: DeepSeek was founded in 2023 by Liang Wenfeng, who is also the head of Chinese quant hedge fund High-Flyer. The company shot to fame last month after various benchmarks showed that its V3 large language model (LLM) outperformed those of many popular US tech giants, while being developed at a much lower cost.
DeepSeek's R1 language model, which mimics aspects of human reasoning, also matched and outperformed OpenAI's latest O1 model in various benchmarks.
DeepSeek R1 News LIVE: Amid concerns raised by a social media user on X (formerly known as Twitter), that Chinese start-up DeepSeek is storing customer data, former union minister Rajeev Chandrasekhar asked if the AI dark horse is destined for teh TikTok treatment in the United States.
“Question of the Day Q: Is DeepSeek AI the Tiktok of AI? A: your answers in comments pls," Chandrasekhar posted on X on January 28.
DeepSeek R1 News LIVE: In subsequent posts on X, Altman wrote, “deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price. we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases."
“but mostly we are excited to continue to execute on our research roadmap and believe more compute is more important now than ever before to succeed at our mission. the world is going to want to use a LOT of ai, and really be quite amazed by the next gen models coming." the OpenAI CEO added
DeepSeek R1 News LIVE: Salesforce CEO Mark Benioff referred to the startup as ‘Deepgold’ in a post on X, writing, “Deepseek is now #1 on the AppStore, surpassing ChatGPT—no NVIDIA supercomputers or $100M needed. The real treasure of AI isn’t the UI or the model—they’ve become commodities. The true value lies in data and metadata, the oxygen fueling AI’s potential. The future’s fortune? It’s in our data. Deepgold. 😇"
DeepSeek R1 News LIVE: Speaking about the rise of DeepSeek, Trump said, “Hopefully, the release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win."
"I would say that could be a positive… So instead of spending billions and billions, you'll spend less, and you'll come up with hopefully the same solution," the 47th US President added
DeepSeek R1 News LIVE: In a post on Threads, Lecun wrote, "DeepSeek has profited from open research and open source (e.g. PyTorch and Llama from Meta). They came up with new ideas and built them on top of other people's work. Because their work is published and open source, everyone can profit from it. That is the power of open research and open source."
