Deepseek – Is it good or bad?

NVDIA has lost 20% of it’s value as a result of the release of Deepseek, which is a large language model that operates in competition with open AI’s chatGPT. It operates more efficiently than its competition, which is seen as a bad thing for NVIDIA as it implies that less computer chip hardware is required to build the models than previously was estimated. In fact, only 1 in 20 of the preivous computing power is necessary according to some estimates.

In terms of the background, DeepSeek is a transformative artificial intelligence initiative that originates from Hangzhou, Zhejiang. It is propelled by innovative leadership under entrepreneur Liang Wenfeng. who established DeepSeek in 2023 as an offshoot of High-Flyer, a hedge fund co-founded by Liang. It has a mission of pioneering advancements through open-source models.

Launching DeepSeek-R1 on January 10, 2025, it introduced an advanced model capable of reasoning with unmatched sophistication. Demonstrating superior efficiency, this creation eclipses contemporaries, achieving groundbreaking success despite limited resources. Within days, it became the most sought-after free download on Apple’s iOS App Store across the United States, reshaping technological perceptions. This development has triggered significant financial implications, including a notable decline in Nvidia’s market valuation.

Focusing on accessibility, DeepSeek fosters global collaboration by releasing open-source tools, inviting researchers and developers worldwide to contribute, adapt, and innovate. This strategy underscores its dedication to democratizing technology. Additionally, the recruitment of academic talent from diverse disciplines ensures broader expertise and knowledge integration, enhancing its cutting-edge capabilities.

Emerging amid geopolitical tensions, DeepSeek thrives despite external restrictions, such as U.S. sanctions limiting access to essential hardware. Demonstrating resilience, the initiative reflects China’s determination to advance its technological standing. Observers describe this achievement as a pivotal moment, marking profound shifts in global innovation dynamics.

However, certain aspects remain contentious. Critics highlight instances of enforced content limitations, aligning with regulatory frameworks within its operational environment. These restrictions reflect broader challenges surrounding governance and technological freedoms, raising complex questions about innovation’s role within varying societal contexts.

DeepSeek’s impact is a net good. It may have hurt the price of NVDIA, but it increases the power of LLMs in general.

Deepseek’s effect on OPEN AI and CHATGPT

The emergence of DeepSeek creates an opportunity for its competitor, demonstrating advancements in technology through reduced resource demands. This establishes a new precedent for developing tools capable of impressive reasoning while consuming fewer computational inputs. By adopting similar methodologies, creators of intelligent systems can innovate more efficiently, ensuring global accessibility.

This milestone highlights alternative strategies for refining architectures, enhancing performance, and optimizing processes. Adopting these techniques can allow breakthroughs and reduce the reliance on energy-intensive frameworks. Efficiency-focused development may also address cost constraints, widening adoption across industries that require adaptable solutions.

Reducing infrastructure dependence ensures broader use, particularly for markets lacking robust technological capabilities. Sustainable approaches align with environmental priorities while supporting equitable distribution of advanced tools. This is the greenest solution to the compute problem that could have been contemplated.

Efforts to balance usability and minimalism position organizations favorably within the industry. Cost-effective implementation ensures alignment with broader goals while improving operational efficiency. Deployments focused on affordability and effectiveness meet the growing demand for adaptable applications.

OPEN AI should have been on the move to increase efficiency earlier, but it looks like DeepSeek will push them to create more powerful models for the same computing hardware cost. So this is awesome!