How Chinese A.I. Start-Up DeepSeek Is Competing With OpenAI and Google

Published On Jan 23, 2025, 5:01 AM

A Chinese start-up, DeepSeek, launched an AI system called DeepSeek-V3 which competes effectively with high-end chatbots from companies like OpenAI and Google. This new system utilized only about 2,000 specialized Nvidia chips compared to up to 16,000 used by American firms, demonstrating a significant efficiency and cost advantage. This innovation raises concerns about the impact of U.S. chip export controls, which are meant to limit China's technological capabilities. DeepSeek's system was developed at a cost of approximately $6 million, significantly lower than the spending by major tech companies on AI development.