DeepSeek is an AI model developed in China that has rapidly climbed the Apple Store’s downloads, catching the attention of investors and sending technology stocks crashing downward. The latest version of DeepSeek, released on January 20, impressed AI experts and enticed the global tech and digital advertising community. The sudden rise of DeepSeek was called a “wake-up call” for American firms by Donald Trump, who urged for American tech firms to step up efforts on competing globally.
What sets DeepSeek apart is its contention that it was built with much lower operating costs than the leading models in the industry, such as OpenAI’s, by consuming fewer cutting-edge chips. The rapid rise of DeepSeek puts the spotlight on the increasing importance of China in tech products, especially since the U.S. had imposed restrictions on advanced chip exports to China. However, AI development remains a priority for Beijing, with DeepSeek being a major factor in the Chinese pivot in sectors like chips and electric cars.
What is DeepSeek-V2?
DeepSeek-V2 is an advanced Mixture-of-Experts (MoE) based language model characterized by an efficient training and performance paradigm. With 236 billion parameters, of which 21 billion are activated per token. It achieves peak performance far above that of DeepSeek’s early release, DeepSeek 67B. This notwithstanding, DeepSeek-V2 achieves 42.5% less training cost and 93.3% less key-value (KV) cache utilization, while improving throughput for result generation by 5.76 times.
Pretrained on a whopping 8.1 trillion tokens. The model went on to Supervised Fine-Tuning (SFT) and Reinforcement Learning (RL) for optimization of its potential. The outcome speaks for itself, DeepSeek-V2 has triumphed in both the standard benchmarks and open-ended generation assignments.
What is DeepSeek-Coder-V2?
An open-source edition of DeepSeek for programming tasks. DeepSeek-Coder-V2 greatly elevates the coding and mathematical reasoning abilities of DeepSeek-V2. While also maintaining performance with general language tasks, by using 6 trillion additional tokens for pretraining. This version performs unbelievably well on 338 programming languages as opposed to its earlier 86 and supports longer context from 16K tokens to 128K tokens.
DeepSeek-Coder-V2 has taken the coding and math benchmark tests and outperformed many others in the space-setting standards entirely in the coding area of AI like GPT-4 Turbo and Claude 3 Opus.
What is DeepSeek-V3?
DeepSeek-V3 has taken a step up from the AI capabilities using an astounding 671 billion parameters, i.e., 37 billion activated for each token. The newest Multi-head Latent Attention (MLA) and the DeepSeekMoE architecture provide effective training and inference. Despite being so large, DeepSeek-V3 needs only 2.788 million GPU-hours of training. Which is incredibly low for a model of this magnitude.
With training on an astonishingly massive 14.8 trillion tokens. DeepSeek-V3 surpassed other open-source models in its performance and is on par with some of the greatest closed-source systems. Demonstrating the potential of efficient and economical training of AI models.
Who is Behind DeepSeek?
In December 2023, DeepSeek was founded by Liang Wenfeng. Who has received degrees in electronic information engineering and computer science from Zhejiang University. Although somewhat murky, Liang’s entry into the AI industry has been writ large over the past months. He was last seen at a gathering hosted by Prime Minister Li Qiang, which again casts a spotlight on DeepSeek.
Liang is also the CEO of the High-Flyer hedge fund. Which focuses on quantitative trading with AI used for analyzing financial data. Under his management, High-Flyer became the first quant hedge fund in China to breach the 100 billion yuan mark. Liang’s assertion that the AI sector in China must step out of the shadows of imitation and claim originality falls across DeepSeek’s innovative AI model.
Liang envisions that China needs to become a leader in global tech development instead of being a follower. The emergence of DeepSeek reflects China’s ambitions of being a leader in AI innovation.
Why is DeepSeek’s Emergence Effecting Nvidia and Other US Companies?
DeepSeek’s approach of attaining state-of-the-art performances through frugal means challenges the long-held belief that only mega budgets and top-line chips can deliver AI breakthroughs. The change has clouded the future of high-performance chips with uncertainty.
The market was rocked by this unprecedented courage in AI efficiency. With Nvidia losing almost $600 billion-the largest one-day market loss in the history of the US. DeepSeek’s low-cost paradigm questions whether big companies have any real credibility. As OpenAI has recently been scrutinized for big valuations without major returns. On the global scale, the very day DeepSeek made headlines, January 27, Nvidia saw its stock plummet by 17% as the market expressed doubts about the future of expensive chips.
There were other attacks on the tech-heavy Nasdaq, with semiconductors and data centers in broad loss. Nvidia, which in the past had crowned itself the most valuable company in the world. Suffered massive losses in its market capitalization. Meanwhile, DeepSeek, being a private entity. Raises serious questions regarding the sustainability of the chip industry and the wider AI ecosystem.
Conclusion
By DeepSeek’s rise, China is not only in competition but is probably going to upend the world AI landscape. The company has really fired up the world by providing innovative models at a cheap price. This takes the wind out of the sails of tech giants and throws into doubt the future of AI development. As this company continues bending the rules and setting new standards. The industry will have to adapt to this next wave of technological disruptions. DeepSeek’s milestone could be a watershed moment in the unfolding global race to seize AI.
