DeepSeek's R1 Model: China's $5.6M GPT-4 Challenger
DeepSeek's R1 model matches GPT-4 power for $5.6M, threatening NVIDIA's market share in China. US restrictions on exporting AI chips fueled China's homegrown alternatives, cutting NVIDIA's projected revenue by half billion.
The Chinese AI That Just Shook the World! How did a mysterious Chinese startup build an AI as powerful as GPT-4 for just $5.6 million. DeepSeek has gained massive attention for its R1 model, which matches top AI systems like OpenAI’s but was developed at a fraction of the cost using an efficient “mixture of experts” approach. It’s optimized for AI workloads, threatening NVIDIA’s market share in the region. The U.S. imposed restrictions on exporting NVIDIA’s most powerful AI chips to China. This fueled China’s own AI development, accelerating homegrown alternatives. NVIDIA’s projected revenue t...