Bloomberg Daybreak: Asia Edition
A Deep Dive on DeepSeek
Jan 28, 2025
Vlad Savov, Bloomberg Tech Editor in Hong Kong, and Jamie Cox, Managing Partner at Harris Financial Group, discuss the rise of Chinese AI startup DeepSeek and its R1 chatbot. They explore how this innovation has created a stir in the market, erasing nearly $1 trillion from US and European tech stocks. The guests delve into implications for global AI competition, trade sanctions affecting China's tech landscape, and the innovations that could redefine energy technology. This conversation illuminates the friction between emerging AI models and traditional computing.
19:18
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Quick takeaways
- DeepSeek's R1 chatbot challenges existing AI models with lower development costs, prompting reevaluation of American firms' valuations and strategies.
- U.S. export restrictions have pushed Chinese firms like DeepSeek towards innovative, efficient software strategies amidst high-end hardware limitations.
Deep dives
DeepSeek's Competitive Edge in AI Development
DeepSeek has emerged as a notable player in the AI landscape with its chatbot, R1, which reportedly rivals the performance of established models like OpenAI's offerings. The company has achieved this at a significantly lower development cost, claiming training expenses of less than $6 million. This cost efficiency has led to speculation about the high valuations of American AI firms, especially as DeepSeek utilizes output from various existing AI technologies. The competitive nature of this new model could disrupt the market and challenge existing players to reassess their valuation and developmental strategies in the face of rising competition.
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