DeepSeek AI has recently been making headlines because it apparently uses less computing power than its rivals, like ChatGPT and Claude.
China-based DeepSeek was reportedly developed for under $6 million USD (about $8.6 million CAD) and is on par with American competitors, which cost hundreds of millions, if not billions, to create. Since DeepSeek entered the market, it has caused a huge stock sell-off, as people feel like the AI bubble is bursting.
That said, a Tech Crunch report mentions that Citi’s analyst firm is skeptical that DeepSeek can be as good as it says it is. The Chinese company had to stockpile older Nvidia A100 GPUs before the US export ban, which is partly why they cost so little, but it also puts them at a significant hardware disadvantage next to American AI upstarts. There is a lot of speculation that DeepSeek was able to get its hands on more modern H100 GPUs, but it can’t mention it because the ban should have prevented them from acquiring the GPUs.
People are still flocking to the new AI model with the DeepSeek app topping the charts in the iOS App Store and the Android Google Play Store in Canada and the U.S.. However, the company might not be prepared for all its growth. A CNBC report says that the company has had a cyber attack limiting the amount of people that can actually sign up for the service.
Source: Tech Crunch, Engadget, CNBC
MobileSyrup may earn a commission from purchases made via our links, which helps fund the journalism we provide free on our website. These links do not influence our editorial content. Support us here.
