DeepSeek's development of a low-cost chatbot has sent shockwaves through the market, leading investors to question whether the company's budget-friendly approach to AI could potentially disrupt the dominance of U.S. tech giants in this rapidly growing sector.
Amidst the buzz in the tech industry and stock markets, there is a notable curiosity surrounding how a relatively small and lesser-known Chinese firm managed to create a highly advanced artificial intelligence chatbot that rivals Open AI's ChatGPT, all while keeping costs significantly low.
The Role of AI Distillation
One theory gaining traction in tech circles is the concept of AI distillation. This training method involves utilizing larger "teacher" models to train smaller, more efficient "student" models. By employing this strategy, companies like DeepSeek may achieve remarkable results in AI development at a fraction of the usual cost.
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