Monday, January 27, 2025

New Chinese AI DeepSeek

The tech markets sold off today because Chinese AI company DeepSeek just released an AI model that is as good as Western models, but without the latest chips, and at 1% of the cost.


It shows that the government ban on high-end chips to China forced them to get innovative, and they caught up.


It's possible that the U.S. bans DeepSeek, but that might not matter.This might be like running the 5 minute mile. Once Roger Bannister did "the impossible", several other people did it. So now DeepSeek has shown that it's possible to build a good model with less.


In the long run, this will help the tech markets. I'm sure Nvidia will still have to sell chips for big models.


© 2025 Praveen Puri