A Chinese startup, DeepSeek, has released powerful new AI models trained at a fraction of the cost incurred by US tech giants. This development has sparked concerns about the US dominance in the AI sector and raised questions about the billions of dollars invested by companies like OpenAI, Meta, and Google.
AI models launched by Chinese startup DeepSeek have raised doubts about the billions of dollars spent by U.S. firms on similar technology, though some have raised doubts about DeepSeek's claims regarding its costs.Shares in major technology companies fell sharply Monday morning after a little-known startup in China released powerful new artificial intelligence models built for cheap on slightly older equipment, sparking worries about U.S. dominance in a crucial emerging sector.
Just last week, OpenAI, Oracle and others announced a plan to spend up to US$500-billion to construct data centres to power AI in the U.S., while Meta is spending up to US$65-billion on AI infrastructure this year. Thanos Moschopoulos, a technology analyst at BMO Capital Markets, advised investors in a research note to be “cautious” about claims about training costs, writing that more testing is needed to fully understand the uses and limitations of DeepSeek’s models.
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