Thoughtworks Technology Podcast
Decoding DeepSeek
Feb 6, 2025
In this insightful discussion, Prasanna Pendse, Global Director of AI Strategy, and Shayan Mohanty, Head of AI Research, share their expertise on the revolutionary AI start-up DeepSeek. They dive into how DeepSeek’s R1 reasoning model differentiates itself from giants like OpenAI. The duo tackles misconceptions about AI training costs, the impact of hardware limitations, and innovative strategies to optimize performance. They also explore the implications of these developments on the tech industry’s economic landscape and the complexities surrounding model licensing.
33:00
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Quick takeaways
- DeepSeek's R1 model showcases innovative optimizations that tackle hardware limitations imposed by export controls, demonstrating creative problem-solving in AI development.
- The aggressive pricing strategy of DeepSeek, offering API access at significantly lower rates than competitors, raises concerns about potential market sustainability and predatory practices.
Deep dives
Understanding DeepSeek's Emergence
DeepSeek, a startup from China, launched a model that reportedly competes with high-profile AI systems, including OpenAI's offerings. The company claimed a significantly lower training cost of approximately $5.6 million for their R1 model, leading to widespread assumptions that this would allow anyone to replicate or outperform existing models for a fraction of the cost. However, misinterpretations of this claim fueled misconceptions about the feasibility of training advanced models on similar budgets. The app's rapid adoption and free access played a crucial role in its rising popularity, further intensified by the geopolitical context surrounding AI development in the region.
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