China’s New AI Model Challenges OpenAI, Google, Microsoft

China’s New AI Model Challenges OpenAI, Google, Microsoft

Post by : Omar Nasser

Jan. 27, 2025 12:43 p.m. 1642

A new company from China, called DeepSeek, has made a powerful new program called DeepSeek R1. This program has caught a lot of attention because it works in a similar way to ChatGPT, which is a well-known tool made by OpenAI. DeepSeek R1 is also special because it shows how companies in China are finding ways around challenges like not being able to get certain technology from the United States.

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DeepSeek R1 is a large program that can help with hard tasks like solving math problems and writing computer code. The people who made it say it works just as well as ChatGPT but costs much less. This is important because other programs like ChatGPT need a lot of money and resources to run.

What makes DeepSeek R1 even better is how it doesn’t need a lot of memory or computing power to work. This means that anyone can use it, even researchers or developers with normal computers. Some smaller versions of this program are free for anyone to use, and they can run on regular laptops.

To create DeepSeek R1, the DeepSeek team had to be clever. They couldn’t use the most powerful chips from the United States because of certain restrictions. Instead, they used older chips and other options to build the program.

When people heard about DeepSeek R1, they had different opinions. Some were excited because they saw it as a good step for programs that everyone can use. Others worried it might make things harder for competition in the AI world.

Yann LeCun, a leading expert at Meta, said we should look at DeepSeek’s success as a good example of how open programs (ones anyone can use and improve) are getting stronger. He said the key thing is that programs like DeepSeek are getting better than closed ones like ChatGPT. He praised DeepSeek for using free tools that anyone can use to help build the program.

On the other hand, Neal Khosla, the CEO of Curai, was more worried. He said DeepSeek’s lower prices might be part of a plan to make things difficult for companies in the US. Khosla believed DeepSeek might be lowering its prices on purpose to take customers away from other programs. Some people said Khosla might not be completely fair because he is connected to OpenAI.

Other people, like Garry Tan from Y Combinator, think DeepSeek’s new program is good for everyone. He said if more programs like DeepSeek are available, they can make AI (the technology that powers these programs) easier for people to use in real life. If programs become cheaper and easier to get, many more people and companies can use them, which will help them grow even more.

In the end, DeepSeek R1 is changing the way people think about AI. Even though there are different opinions about it, there is no doubt that the arrival of this new program is helping AI grow and improving how people use technology. Whether it challenges the US or helps new ideas grow, DeepSeek R1 is a big part of the future.

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