THE artificial intelligence (AI) market follows an upward curve, transforming entire sectors and attracting billion-dollar investmentsHowever, a new player in the market created shockwaves that shook the industry this week (January 27, 2025). We're talking about DeepSeek, a Chinese startup that shook up the market by launching a new AI model, challenging industry giants.
In this article, we'll explore how DeepSeek achieved this feat, its impact on the technology market, and what this means for the future of artificial intelligence.
What is DeepSeek?
Founded in 2023 by Chinese entrepreneur Liang Wenfeng, DeepSeek is a startup that has quickly become one of the most promising companies and shaken up the global AI market. The company gained attention with the launch of its AI model, called R1, an innovation that combines cutting-edge performance with a surprisingly low development cost.
While giants like OpenAI and Google invest billions of dollars in their models, DeepSeek developed the R1 with a budget of just US$1,000,000. The secret? The efficient use of around 2,000 Nvidia H800 chips, optimized for AI tasks.
Key Highlights of the R1 Model:
- Performance comparable to leading Western models;
- Low production cost;
- Efficiency in tasks such as programming, mathematics and natural language processing.
An Open Source Model: The DeepSeek Difference
A crucial point that draws attention in the model of DeepSeek and its open source nature. This means that technology can be accessed by any developer or company around the world, allowing for customization and continuous improvements. According to Joubert, a strategist consulted by CNN, this represents a significant shift in market dynamics.
“This is no longer just something for American big tech companies, but is open to anyone who wants to use the code and improve it.”, he explained.
This difference, which shook the global market, was also highlighted by Will Castro, chief strategist at Avenue, who highlighted the strategic impact of the open source model. "The issue of being open source is extremely important. Unlike ChatGPT or Llama, which are closed models, this is an open model that can be plugged in and added with different functionalities by other companies.", he assessed.
However, even with the revolutionary potential of its openness, DeepSeek's success will depend on more than just accessibility. Castro warns that the model won't survive solely on curiosity and the initial boom in downloads. To consolidate its position, the technology will need widespread adoption by companies, which could encounter a critical obstacle: Western distrust of Chinese technologies.
Impacts on the Technology Market
The arrival of the R1 model shook the global market and caused a domino effect. Major technology companies, such as Nvidia, saw their shares plummet. Nvidia, specifically, suffered a 17% drop in market value, equivalent to a loss of nearly US$$ 593 billion.
This movement reflects the investors' concern about competitiveness of China's emerging technologies, which, with strategic investments, are becoming protagonists in the global artificial intelligence scenario.
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AI Competitiveness in China
DeepSeek's success isn't isolated. It's part of a broader strategy by the Chinese government, which has invested heavily in AI. The goal is clear: to position the country as a global leader in the next technological revolution.
DeepSeek, the AI that shook up the market, represents a breakthrough in this technological race, demonstrating that it is possible to develop innovative solutions at lower costs and with greater efficiency. This approach has generated tensions, especially in Western countries, where the costs of developing similar technologies are significantly higher.
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The AI Market: Growth and Opportunities
Common global artificial intelligence market designed for reach hundreds of billions of dollars in the coming years, it is clear that the AI is here to stay. Companies around the world are investing in integrating AI into their operations, from customer service to industrial automation.
Innovations in this sector not only drive the economy but also transform the way we live and work. For companies, this represents a unique opportunity to optimize processes, reduce costs, and offer differentiated customer experiences.
READ ALSO: Generative AI: What It Is and How to Apply It to Your Business
Transform Your Business with the Power of AI
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