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DeepSeek vs ChatGPT, how the modest Chinese AI left the leader reeling

DeepSeek’s launch has rattled the AI market with international stock markets plummeting in the aftermath of an impressive performance by the China-based AI
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The China-based AI has surpassed the once leading ChatGPT with its modest development. Screen capture of the Apple global productivity charts
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A Chinese AI startup has launched DeepSeek, a chatbot that is making waves in the US AI market. Despite being developed with a modest budget of approximately $5.5–6 million (compared to OpenAI’s models costing tens of millions), DeepSeek’s capabilities and pricing structure are attracting widespread attention.

DeepSeek's affordability and open-source approach make it unique. The model is entirely open-source, allowing users to download it for free and run it locally without sharing their data.

This freedom contrasts with OpenAI's less transparent approach. Furthermore, DeepSeek claims to perform particularly well in technical tasks like coding and mathematical computations.

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Features and performance 

DeepSeek is drawing comparisons to ChatGPT in several areas:

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Cost-Effectiveness: API access starts at $0.14 per million tokens, vastly undercutting OpenAI’s pricing of $7.50 for the same usage.

User Experience: While ChatGPT outshines DeepSeek in conversational and creative tasks, DeepSeek appears stronger in logic-driven queries.

Global Success: DeepSeek's app recently surpassed ChatGPT as the most downloaded app on Apple's US App Store.

DeepSeek’s foundation is built on a mix of technologies, including Nvidia chips, Meta’s open-source Llama architecture, and Alibaba's Qwen framework. Despite this, the model is designed to consume fewer resources while delivering competitive results.

Challenges and limitations 

DeepSeek's rise, however, isn't without drawbacks. As a China-based AI, it faces censorship on politically sensitive topics, such as the Tiananmen Square protests. Questions on banned subjects often result in the chatbot redirecting users to other topics.

Kayla Blomquist, a researcher at Oxford, notes that while the Chinese government has been relatively "hands-off," its recent investments in AI signal potential shifts in this policy.

Blomquist added that DeepSeek’s success challenges monetization models in the US AI sector and signals the possibility of more resource-efficient AI development.

Industry reactions 

DeepSeek's sudden dominance has sparked debates and concerns in the US tech industry. Memes poking fun at OpenAI’s perceived fall from grace are trending, and even US President Donald Trump commented on this as a "wake-up call" for American businesses.

For most users, especially those unwilling to pay $20 per month for ChatGPT's premium tier, DeepSeek represents a viable, cost-effective alternative. The months ahead will reveal whether DeepSeek’s rise signals a long-term shift in the global AI landscape or a temporary shake up.

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