DeepSeek, a Chinese AI startup that has taken the tech world by storm with its low-cost, high-performing AI chatbot has raised big questions about AI’s future energy needs, efficiency, and global competition. Unlike other chatbots like ChatGPT and Google Gemini, DeepSeek claims to have built its chatbot at a fraction of the cost, which is potentially reshaping the AI landscape.
With AI adoption growing rapidly in the Indian market, we think that DeepSeek may be a major player in the country’s AI revolution. Here is everything you need to know about the DeepSeek and how is it disrupting the market.
What is DeepSeek?
DeepSeek is a recently launched Chinese AI company. It is a powerful chatbot which is competing with other leading AI chatbots available in the market like OpenAI’s ChatGPT, Google’s Gemini, Meta AI and Anthropic’s Claude.
DeepSeek claims that they have built their AI model for just USD 5.6 million and here are the new capabilities of the chatbot:
- Generates software code
- Solves complex math problems
- Explains the reasoning behind the answers
- Provides multi-step problem-solving
It is further stated that in recent times, with Its efficiency and affordability, DeepSeek has been marked as the No.1 downloaded free app on Apple’s iPhone store, which has further surpassed other popular chatbots like Google Gemini and ChatGPT.
How does DeepSeek work?
DeepSeek's AI assistant runs on a custom-built model called R1, which is trained by using low-cost Nvidia AI chips that the U.S. will still enable for sale in China.
While U.S. tech giants have been investing billions in power-hungry data centres, DeepSeek’s AI operates on a significantly smaller budget, which will raise questions about whether AI could be cheaper and more energy-efficient.
Why is it different from ChatGPT and Gemini?
- Lower training cost: DeepSeek claims that its AI was trained for just USD 5.6 million, compared to the billions spent by OpenAI and Google.
- Lower power consumption: AI data centres are expected to consume up to 12 per cent of the U.S.’s electricity by 2028. DeepSeek suggests a more energy-efficient model.
- Alternative to U.S. AI dominance: With the US restricting advanced AI chip exports to China, DeepSeek has built a competitive AI model using older tech.
DeepSeek impact on AI industry
- DeepSeek has been disrupting the AI industry overnight, making major AI stocks tumble as investors re-evaluate how AI models are building.
- Tech giants like OpenAI, Microsoft and Meta are already spending billions to expand their AI infrastructure.
- DeepSeek’s cost-effective approach, on the other hand, has threatened its dominance.
- DeepSeek’s competitors- Microsoft, Google and Meta are already investing heavily in data centres, believing that AI needs massive computing power. DeepSeek, on the other hand,d challenges this assumption.
- AI adoption could accelerate worldwide, as cheaper AI models become more accessible.
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