DeepSeek is All the Rage!

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In recent months, a new player has emerged in the artificial intelligence arena, namely DeepSeek, a Chinese large language model that has captured global attentionIts rise is comparable to the buzz surrounding Huawei back in 2019, and some might argue that DeepSeek has even outshined it in the current contextWhat has fueled this phenomenon? The reasons are twofold: firstly, the AI sector is experiencing unprecedented enthusiasm worldwideEverywhere you look, discussions around AI have become a focal point, fueling hopes for a new industrial revolution driven by this technologyTherefore, even the slightest advancement or innovation in the AI field can attract massive interest.

Secondly, DeepSeek has shattered a long-standing myth held by Western companiesTraditionally, these firms believed that creating a robust AI model relied heavily on the availability of powerful computing chips, equating computational power with successHowever, in a striking counter-narrative, DeepSeek managed to achieve performance levels comparable to those of models that cost OpenAI a staggering $100 million, while only investing a mere $5 millionThis remarkable achievement is not coincidental; it is the result of DeepSeek’s commitment to deep innovation in algorithm optimization and resource managementThe team has introduced a novel concept termed “algorithm density,” shifting the focus away from the traditional emphasis on the sheer volume of algorithmsThis shift in perspective has generated a new trajectory for AI model development, one that has left the global AI community in awe while undermining the confidence of Western companies that have relied on computational advantages for so longThe financial markets reacted visibly, with DeepSeek’s emergence contributing to Nvidia experiencing one of its largest stock declines in history—this reflects the profound recognition of DeepSeek’s technological prowess and the apprehensions regarding potential disruptions to the traditional AI industry landscape.

Observing DeepSeek’s rapid ascension, Western powers have reacted defensively, initiating a series of countermeasures

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First came cyberattacks aimed at destabilizing DeepSeek's operationsThis was swiftly followed by David Sachs, the White House AI lead, coming forth to accuse DeepSeek of "stealing technology" through the use of OpenAI's models for training purposesFurthermore, there were intentions to limit the exports of Nvidia H20 chips specifically supplied to DeepSeek, as an attempt to stifle the burgeoning development from a hardware standpoint.

It is noteworthy that the United States’ strategy closely mirrors the tactics employed during the 2019 campaign against HuaweiHowever, times have changed, and the context in which we operate today cannot be compared to the pastThe efforts of American Presidents to curb China’s AI advancements through strategic chip blockades seem to struggle in their efficacy.

Even in a scenario where DeepSeek loses access to Nvidia chips, it can rely on Huawei’s Ascend 910 as a fallbackInterestingly, the performance metrics of the Ascend 910C surpass that of Nvidia’s A100, albeit not yet reaching the levels of the B200. However, DeepSeek’s outstanding algorithms are sufficient to bridge this performance gap.

As Zhou Hongyi succinctly put it, we are akin to a small team armed merely with “Xiaomi products and rifles” yet achieving results comparable to “nuclear bombs,” succeeding in dismantling chip power restrictions with our profound mathematical capabilities.

On January 31st, in a dramatic turn of events, three Western tech giants—Nvidia, Amazon, and Microsoft—announced their connections to the DeepSeek-R1 model without any prior coordinationWhat left many astonished was Nvidia’s declaration of DeepSeek as the "most advanced large language model," effectively endorsing a Chinese enterprise publicly!

This move carries monumental significanceIt not only bestows upon DeepSeek substantial industry influence and commercial prospects, but it also disrupts the longstanding American monopolistic stronghold in the realm of AI large models

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