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The Daily Brief

Why is everyone talking about DeepSeek?

Jan 30, 2025
Discover the rise of DeepSeek, an innovative AI player shaking up Silicon Valley with its resource-efficient, open-source approach. Explore how it challenges traditional strategies while making advanced technology more accessible. Dive into India's booming Electronics Manufacturing Services sector, where government incentives are driving local production and promising job growth. Plus, get quick updates on economic highlights like gold loan interest rates and major corporate activities.
21:34

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Quick takeaways

  • DeepSeek's rise in the AI landscape highlights its innovative engineering and open-source strategy that challenges major American competitors within a limited budget.
  • India's EMS sector is poised for growth as local manufacturing efforts increase, supported by government initiatives, despite challenges related to imports and profit margins.

Deep dives

DeepSeek Disrupts the AI Landscape

DeepSeek has emerged as a significant player in the AI domain, challenging established American labs like OpenAI and Google. Initially a side project of the hedge fund Highflyer, DeepSeek achieved notable breakthroughs by developing an AI model, V3, that matched competitors and then launched a reasoning model that rivaled OpenAI's O1. Remarkably, DeepSeek accomplished this with a budget of only $5 million, contrasted against the hundreds of millions spent by American labs, thanks to innovative engineering that maximized the use of less advanced chips. Their open-source approach, allowing anyone to access and modify their AI model, directly opposes the growing trend of secrecy among established tech companies.

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