How Does China's DeepSeek App Stack Up Against OpenAI's ChatGPT and Meta AI?
If you’ve been following the latest in emerging technology, you're probably familiar with generative artificial intelligence services like ChatGPT and Meta AI. While these models have been making waves in the tech industry, a newcomer called DeepSeek has recently captured attention by offering a similar generative capability to GPT-4o at a fraction of the cost. Since its launch in the American market, DeepSeek has caused significant disruptions in major stock prices, affecting companies like Nvidia, Microsoft, and Meta.
The Rise of DeepSeek
DeepSeek, a Chinese app, has been in existence since 2023 but only gained widespread attention in recent days. Owned by a Chinese hedge fund, the company has already made a substantial impact on the AI landscape. Despite its novelty, DeepSeek operates similarly to ChatGPT and Meta AI by generating responses to written prompts using information from the web.
Users can interact with DeepSeek to ask questions, seek advice, or create written content with impressive accuracy.
Key Features of DeepSeek
What sets DeepSeek apart is its open-source code, allowing anyone to view, modify, and adapt the platform for free. This feature appeals to coders and web engineers who can customize the code to create specialized versions. With a development cost of just $6 million, DeepSeek is significantly more affordable than its competitors, such as OpenAI's ChatGPT, which required over $100 million to develop.
Impact on the US Stock Market
DeepSeek's entry into the US market garnered rapid popularity among American users, surpassing the likes of ChatGPT in downloads.
This success led to a shift in investor focus, prompting withdrawals from established AI companies like Nvidia. The resulting impact caused a notable drop in stock prices, with Nvidia experiencing an 18% decline on the NYSE.
Security Concerns and Future Implications
While DeepSeek's success signals a need for American engineers to innovate at lower costs, its Chinese ownership raises security concerns due to potential data access by the Chinese government. This situation mirrors the ongoing debate around apps like TikTok that are subject to similar scrutiny.
More about DeepSeek
The success of DeepSeek could be a catalyst for a new era in AI development, urging companies like OpenAI to rethink their strategies in response.
Conclusion
As the tech industry continues to evolve, the competition between DeepSeek and established AI models will shape the future of artificial intelligence and innovation.
