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What Is China’s DeepSeek and Why Is It Freaking Out the AI World?


(Bloomberg) -- DeepSeek, an AI startup just over a year old, stirred awe and consternation in Silicon Valley with its breakthrough artificial intelligence model that offered comparable performance to the world’s best chatbots at seemingly a fraction of the cost. Created in China’s Hangzhou, DeepSeek carries far-reaching implications for the global tech industry and supply chain, offering a counterpoint to the widespread belief that the future of AI will require ever-increasing amounts of power a

(Bloomberg) -- DeepSeek, an AI startup just over a year old, stirred awe and consternation in Silicon Valley with its breakthrough artificial intelligence model that offered comparable performance to the world’s best chatbots at seemingly a fraction of the cost. Created in China’s Hangzhou, DeepSeek carries far-reaching implications for the global tech industry and supply chain, offering a counterpoint to the widespread belief that the future of AI will require ever-increasing amounts of power and energy to develop. The much better efficiency of the model puts into question the need for vast expenditures of capital to acquire the latest and most powerful AI accelerators from the likes of Nvidia Corp. That also amplifies attention on US export curbs of such advanced semiconductors to China — which were intended to prevent a breakthrough of the sort that DeepSeek seems to represent.

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