ChatGPT, say Hi! to your new nemesis DeepSeek | DigiconAsia
In the ever-evolving world of generative AI (GenAI), a new player has stepped onto the stage, and it has been making waves: DeepSeek — named after the China firm that developed the chatbot. Currently in its third iteration, the recently unveiled chatbot has attracted immediate attention for its efficiency and performance. With 671bn parameters and a lean development budget of just US$5.58m over 55 days, the model demonstrates that China can achieve world-class AI results with less financial input than its Western counterparts.
DeepSeek’s achievements are made all the more impressive by America’s export restrictions on advanced AI chips to China. Despite limited access to top-tier hardware, DeepSeek’s engineers utilized Nvidia’s H800 chips to train their model — a creative workaround that has not seemed to slow them down. The result? A chatbot that rivals the capabilities of OpenAI’s GPT-4 and Anthropic’s Claude 3.
DeepSeek eye-opening benchmarks
When measured against industry competitors, DeepSeek has proven itself a competitive force. Independent testing has revealed that DeepSeek-V3 outperformed Meta’s Llama 3.1 and Alibaba’s Qwen 2.5, placing it in the same league as GPT-4 and Claude 3.5 Sonnet. For users, this means a chatbot that can understand nuanced questions, generate high-quality responses, and engage in complex conversations — all with a level of sophistication that matches the best models from the West.
Moreover, where large language models from the West often require massive budgets and extended timelines, DeepSeek has shown that it can achieve similar results in a fraction of the time and cost. This efficiency not only underscores the technical talent and determination within China’s AI sector but also signals that the global AI race may become even more competitive in the years to come.
Is StarGate a strategic response?
The rise of DeepSeek coincides with escalating tensions between the United States and China. In one of his first major policy moves since returning to the White House, President Donald Trump announced the StartGate project alongside tighter export controls on AI-related technologies, aiming to prevent China from accessing cutting-edge chips and research advancements developed in the US.
Yet, DeepSeek’s success underscores the limits of such measures. While the US had hoped to throttle China’s AI development through restrictions, DeepSeek’s efficient use of the more accessible Nvidia H800 chips shows that Chinese firms are adept at finding workarounds. Rather than stalling innovation, these challenges appear to be motivating China’s tech sector to innovate even faster.
The implications are significant. DeepSeek’s rise is not just about technology — it constitutes a statement in the ongoing battle for global AI dominance. For President Trump’s administration, the emergence of DeepSeek is a stark reminder that China is not backing down.
Strategies to learn (or unlearn)
Upon its release, DeepSeek’s AI assistant quickly became the most downloaded free app on mobile phone platforms, even surpassing ChatGPT in popularity. This is no small feat, given ChatGPT’s dominance and the skepticism often associated with products from China.
Moreover, where large language models from the West often require massive budgets and extended timelines, DeepSeek has shown that it can achieve similar results in a fraction of the time and cost. This efficiency not only underscores the technical talent and determination within China’s AI sector but also signals that the global AI race may become even more competitive in the years to come.
What can the world at large learn from this little tale of rivalry, unfettered hubris, and subtle traps of pride and insularity?
Seeing the bigger picture, regardless of one’s political, socio-economic, and cultural beliefs, the lessons above say much about the prognosis for geopolitical harmony in 2025 and beyond. Whatever happens, organizational leaders will need to keep their eyes on the underdog, temper their optimism in shallow hyperbole, and place their business bets wisely.
So, ChatGPT, say Hello to your worthy competitor, DeepSeek. The race is on, and the winners will ultimately be the global users who benefit from the rapid evolution (and responsible management) of AI technology instead of letting it deeply polarize the world amid its unlocking of ephemeral material benefits.
