China's DeepSeek Shakes Up AI World with Budget-Friendly Models

A startup turning the AI world upside down with models that outmatch American ones at a fraction of the cost. That's what's happening with DeepSeek in China. This rising star has made waves, leaving U. S. tech giants rattled. Chinese investors are cheering, seeing DeepSeek as proof of their country's AI prowess. So, how did this little-known company become a global sensation? DeepSeek is based in Hangzhou, founded by Liang Wenfeng in 2023. Liang, who also runs an AI-driven hedge fund, has filled DeepSeek with curious, fresh minds. Before the U. S. cut off chip supplies, DeepSeek bought thousands of Nvidia's A100 chips, driven by Liang's curiosity. Their open-source language model, R1, was a hit, and it cost just $6 million to create. It's now second only to OpenAI's o1 in AI analysis quality. But it's not free from controversy - it avoids sensitive topics when used within China. China aims to lead AI globally by 2030, and DeepSeek is a poster child for this goal. The U. S. , worried about military uses, has tried to slow China's AI growth. But DeepSeek's success shows that China's innovative spirit can't be stopped. This tale of a startup shaking up the AI world is a great lesson in the power of curiosity and the swift pace of tech advancements.