DeepSeek R1 outpaced OpenAI at 3% of the cost.

[Dondilion]

https://venturebeat.com/ai/deepseek-...3-of-the-cost/

quote:
This all raises big questions about the investment plans pursued by OpenAI, Microsoft and others. OpenAI’s $500 billion Stargate project reflects its commitment to building massive data centers to power its advanced models. Backed by partners like Oracle and Softbank, this strategy is premised on the belief that achieving artificial general intelligence (AGI) requires unprecedented compute resources. However, DeepSeek’s demonstration of a high-performing model at a fraction of the cost challenges the sustainability of this approach, raising doubts about OpenAI’s ability to deliver returns on such a monumental investment.

quote
Meta’s open-weights model Llama 3, for example, exploded in popularity last year, as it was fine-tuned by developers wanting their own custom models. Similarly, now DeepSeek-R1 is already being used to distill its reasoning into an array of other, much smaller models – the difference being that DeepSeek offers industry-leading performance. This includes running tiny versions of the model on mobile phones, for example.

[Dondilion]

The effect of DeepSeek on High Tech shares.

https://finance.yahoo.com/news/nasda...ycsrp_catchall

quote:

Buzz grew over the weekend about DeepSeek’s latest AI model being cost-effective while running on less-advanced chips, casting doubt on the validity of the rich valuations for companies like Nvidia Corp. (NVDA), which has led the global AI stock boom as its chips have been seen as essential to the technology.

Shares of the Santa Clara, California-based firm slid over 10% in premarket trading on Monday, which could become one of the biggest wipeouts of market value for an individual company in history, if shares end the session at these levels.

[Chicks]

DeepSeek Fails Researchers' Safety Tests
'DeepSeek R1 exhibited a 100% attack success rate, meaning it failed to block a single harmful prompt,' Cisco says.
https://www.pcmag.com/news/deepseek-...by-researchers

So, it's a disaster, not a competitor.

[Chicks]

DeepSeek just insisted it's ChatGPT, and I think that's all the proof I need
https://www.techradar.com/computing/...e-proof-i-need

Stolen

[Dondilion]

Sam Altman says OpenAI will embrace two new approaches, one from DeepSeek and another from Meta.

https://www.businessinsider.com/sam-...-source-2025-1

quote:
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The discussion touched on several AI topics, but in particular Altman was asked about DeepSeek, which has taken the tech world by storm after rolling out top-performing AI models that are relatively cheap to use.
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quote:
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DeepSeek's reasoning models, such as its R1 offering, show every step to users. When Business Insider demoed DeepSeek with the Chinese lab's DeepThink setting, it shared about 16 pages of mathematical steps before providing the correct answer to a tough question.

On Friday, Altman said OpenAI would follow DeepSeek's approach.

[Dondilion]

DeepSeek gives Europe's Tech firms a chance to catch up in the global AI race.

https://finance.yahoo.com/news/deeps...ycsrp_catchall

quote
DeepSeek's emergence is changing the landscape for AI, offering companies access to the technology at a fraction of the cost, according to interviews with more than a dozen startup executives and investors. It also has the potential to push other AI companies to improve their models and bring down prices.

[Rajoo]

Originally Posted by Dondilion

DeepSeek's emergence is changing the landscape for AI, offering companies access to the technology at a fraction of the cost, according to interviews with more than a dozen startup executives and investors. It also has the potential to push other AI companies to improve their models and bring down prices.

Accusations and Investigations

OpenAI, the company behind ChatGPT, has stated that it is reviewing indications that DeepSeek may have inappropriately used their models. The process in question is known as "distillation," where one AI extracts knowledge from another to enhance its own capabilities1. OpenAI's terms of service explicitly prohibit using their model outputs to train competing systems.
White House and Official Statements

David Sacks, the White House AI czar, has suggested there is "substantial evidence" that DeepSeek "distilled the knowledge out of OpenAI's models". However, no concrete evidence has been publicly presented to support these claims1.

https://www.perplexity.ai/search/did...QVWEIcxHQPUOyA

[Dondilion]

A real impact of DeepSeek is that it engendered a push to OPEN-SOURCE.

The article below refers to the formation of a European alliance to build Large Language Models which will be open-source.

https://thenextweb.com/news/european...enges-us-china

quote:
What’s unique about this initiative is that we’re bringing together many Europe’s leading AI organisations in one focused effort, rather than having many small, fragmented projects,” he told TNW via email.

“This concentrated approach is what Europe needs to build open European AI models that eventually enable innovation at scale.”

[Chicks]

Originally Posted by Dondilion

A real impact of DeepSeek is that it engendered a push to OPEN-SOURCE.

The article below refers to the formation of a European alliance to build Large Language Models which will be open-source.

Um, the "Open" in "OpenAI" means that it was open source. It started out open source, then Altman, who was fired and re-hired, decided to change it. Perhaps he will change it back again, who knows?

[Chicks]

Google debuts new class of cheap AI models after DeepSeek raises cost questions
https://finance.yahoo.com/news/googl...160258242.html

The cost to develop AI models and, in turn, the cost to use them have come under investor scrutiny in recent weeks after DeepSeek revealed it spent less than $6 million on the final training run of a model. Developers at leading U.S. AI firms said the total cost was likely magnitudes larger.

Gasp! Surely the Chinese developers didn't LIE about their costs!

I have been involved with beta testing three different AIs, from three different companies so far. One of them can carry on a conversation convincingly already.