DeepSeek and the generative AI perception dilemma

Published on January 28, 2025

The week after the US government endorsed a plan to pump half a trillion dollars into building the world's most powerful compute infrastructure, tech share prices have plummeted. That's because a small company in China showed that there could be another way, and it has terrified AI's most vocal proponents. While US tech is stuck in a war over compute and who can deploy the largest data center, China's DeepSeek launched a cheap R1 chatbot that appears to be just as good as OpenAI's latest o1 models.

The company's open sourced DeepSeek-V3 model was built on a training run that cost $5.6 million (although there are many caveats, which we will look at), using hardware that is inferior to US deployments.

Read the full article here.

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