Is DeepSeek the next evolution of AI?

Are we witnessing the biggest shake-up in AI history?

In this episode of Inspiring Tech Leaders podcast, I dive into the rise of DeepSeek, the Chinese AI app that’s taking the world by storm!

💡 How did DeepSeek surpass ChatGPT as the #1 downloaded app in the U.S.?

💡 Why is DeepSeek's cost-effective AI model a game-changer?

💡 What does DeepSeek's success mean for U.S. tech giants like OpenAI and Nvidia?

💡 Could this be a turning point in the global AI race?

From groundbreaking innovations to geopolitical tensions and market-shaking consequences, this episode unpacks how DeepSeek is challenging the status quo and what it means for the future of AI.  Don’t miss this must-listen episode - subscribe now and stay ahead of the AI revolution!

Transcript

Welcome to the Inspiring Tech Leaders podcast, with me Dave Roberts.  In this episode we’re going to delve into DeepSeek, the Chinese AI application that has rapidly ascended to the top of the tech world.  We will explore its origins, technological advancements, the geopolitical implications of its rise, and the reactions from global leaders and markets.  Join me as we unpack how DeepSeek is reshaping the landscape of artificial intelligence.

Today, we’re diving into a topic that has been making headlines across the world - DeepSeek, the Chinese AI app that is challenging the status quo in artificial intelligence.  DeepSeek, a startup founded in 2023 in China, has taken the tech world by storm.  Liang Wenfeng is the CEO, who previously co-founded one of China’s top hedge funds, High-Flyer, which focuses on AI-driven quantitative trading.

The CEO described DeepSeek as a research lab rather than a commercial enterprise, stating that their recruitment process prioritised capabilities over credentials and hired young Chinese educated researchers.  He said that people were given the space to explore and the freedom to make mistakes, and that innovation often arises naturally, it’s not something that can be deliberately planned or taught.

The company had created a cluster of 10,000 of Nvidia’s high-performance chips used to build and run AI systems. However, following U.S. restrictions on the sale of these chips to China, DeepSeek adapted by utilising Nvidia’s lower-performing chips, which are not banned in China.  This approach would now suggest that cutting-edge technology might not be critical for AI development.

DeepSeek released a free chatbot app on the 10th January, based on the R1 model for iOS and Android.  Earlier this week DeepSeek had surpassed ChatGPT as the most downloaded free app on the Apple App Store in the US.

DeepSeek’s rapid rise can be attributed to several key innovations. The company developed its AI assistant using fewer specialised computer chips, making it more cost-effective.

The app offers three primary functions:

Answering questions and providing users with information and responses to various queries.

A search mode that delivers internet-based responses for more dynamic information retrieval.

DeepThink mode, which offers step-by-step reasoning abilities, enhancing its problem-solving capabilities. 

Despite experiencing large-scale attacks and censoring sensitive topics, DeepSeek’s free AI could be a significant competitor against subscription-based services like OpenAI. 

Although, the emergence of DeepSeek has significant geopolitical and economic implications.  The apps success has led to a drop in shares of U.S. AI companies and called into question the investment strategy of the AI supply chain.  President Donald Trump has called DeepSeek a wake-up call for American AI firms, emphasising the need for the U.S. to be laser-focused on competing to win in the AI race.  But China is aggressively investing in AI, and DeepSeek’s breakthrough could be the first of many.  If DeepSeek continues to gain momentum, it could escalate geopolitical competition in the AI space.

OpenAI CEO Sam Altman acknowledged DeepSeek’s achievements, stating, DeepSeek’s R1 is an impressive model, particularly around what they have been able to deliver for the price.  He also expressed determination to deliver superior models in response to this new competition.

The shockwaves extended across all tech stocks linked to AI earlier this week, and the impact of DeepSeek’s launch on the global market has been profound.  Nvidia, the world’s most valuable company, faced an unprecedented market loss, dropping 17% and erasing nearly $600 billion in a single day after China’s DeepSeek launch.  The AI Tech Stocks have regained some ground, but we’re still to see if this represents a longer-term market adjustment or not.

So, what does this mean?  Well, it signals that investors are nervous.  OpenAI and its US-based competitors have long had an advantage, not just in technology but in massive funding and infrastructure.  If DeepSeek can truly match or outperform their models with a more cost-effective approach, it could disrupt the entire AI market.

The rapid adoption of DeepSeek, which performs similarly to ChatGPT in functions like maths, coding, and writing, has shaken the belief in the U.S. dominance in the AI industry.

So, while DeepSeek’s technological advancements are noteworthy, the app has faced criticism for its responses to politically sensitive topics. For instance, it denies human rights abuses in Xinjiang and asserts that Taiwan is an inalienable part of China, reflecting the government’s stance. 

Additionally, DeepSeek has faced large-scale cyber-attacks amid its surge in popularity, leading the company to temporarily limit registrations to manage the situation.

The rise of DeepSeek signifies a critical moment in the global AI race, demonstrating innovation on a fraction of the resources previously thought necessary. It challenges the U.S. tech industry’s dominance and prompts a re-evaluation of strategies in AI development.

As the landscape evolves, it will be crucial to monitor how companies and governments respond to this new competition and what it means for the future of artificial intelligence globally.  This is just the beginning of what could be one of the biggest shake-ups in the AI industry.  Can DeepSeek really challenge the AI giants?

Well, that wraps up today’s episode on DeepSeek and its global impact. Thank you for joining me on the Inspiring Tech Leaders podcast.  If you enjoyed this episode, please subscribe and leave a review. 

Thanks again for listening, and until next time, stay curious, stay connected, and keep pushing the boundaries of what’s possible in tech.