Chip manufacturer, giant Nvidia lost nearly $600 billion of marketplace value after the emergence of a much cheaper AI model produced by Chinese DeepSeek startup. This, as the media suggest, has undermined the dominance of American technology companies.
DeepSeek, based in Hangzhou, founded only at the end of 2023 by Liang Wenfeng, released an artificial intelligence model to match the capabilities of Google and OpenAI models.
The creator of DeepSeek-R1 claims that much little advanced chips were utilized for its development, and this in addition in little number than tech giants in the United States do.
A survey of the model improvement squad was released last week. The group stated that it spent little than US$6 million on the computing power needed to train the AI model. This is only a fraction of multi-billion-dollar investigation on the alleged artificial intelligence of OpenAI, Alphabet and Meta companies.
Marc Andreessen, 1 of the most influential investors venture capital in the technology industry, he called the emergence of the Chinese model "moment of Sputnik AI".
The appearance of a tiny Chinese startup, which may compete with the best players in Silicon Valley, has undermined the assumptions regarding US dominance in the AI field. It besides raised concerns about a drastic simplification in marketplace valuation for companies specified as Nvidia, Alphabet and Meta.
On Monday, Nvidia, having almost a monopoly on the production of semiconductors supplying generic artificial intelligence, lost nearly US$600 billion of marketplace capitalization, after the share value fell by 17 percent.
U.S. president Donald Trump, who had just announced a major USD 500 billion AI backing task (OpenAI, Oracle, and nipponese SoftBank) said DeepSeek should be a "warning signal" about the request for a maximum concentration of American manufacture on triumph in this rivalry.
DeepSeek was formed in late 2023 on the initiative of Liang Wenfeng, an entrepreneur who besides runs a High-Flyer hedge fund.
In 2013, the inventor and postgraduate of Zhejiang University was co-founder of Hangzhou Jacobi Investment Management, an investment company that utilized “artificial intelligence” to implement commercial strategies.
Liang founded 2 more companies focused on computer-controlled investments: Hangzhou Huang Technology Co and Ningbo Huang Quantum Investment Management Partnership – in 2015 and 2016 respectively.
In an interview with Chinese average Waves in 2023. Liang disagreed with the thesis that it is besides late for startups to engage in “artificial intelligence”. – Reproduction itself is comparatively inexpensive – based on public papers and origin code kind open source A minimum of training or even tuning is enough. However, investigation requires extended experiments, comparisons and higher computational requirements and expectations of talents – he argued.
Liang added that "from a broader position he wants to confirm certain hypotheses". – For example, we have a hypothesis that the essence of human intelligence can be language, and human thought can be fundamentally a linguistic process. – he said.
– What you consider to be ‘thinking’ may actually be the weaving language of your brain. This suggests that artificial intelligence mostly akin to human intelligence could possibly appear from large language models He did.
"OpenAI was founded 10 years ago, employing 4,500 employees and raising $6.6 billion in capital. DeepSeek was formed little than 2 years ago, employs 200 employees and was developed for little than $10 million," noted X Adam Kobeissi, founder of the marketplace analysis newsletter The Kobeisse Letter. This undermines America's belief that they lead the lead in AI that there is simply a lot to spend on specified projects.
DeepSeek engineers have reported that about 2,000 Nvidia H800 chips have been utilized to train their model, which are little advanced than those presently commonly used. The creators besides utilized a number of specialized models cooperating with each another to let slower chips to analyse data more efficiently.
Nvidia's California H800 chips, which were designed to meet US export control requirements, were freely exported to China by October 2023. Lian was to collect 10,000 Nvidia A100 graphics processors before their export was banned.
Source: aljazeera.com
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