DeepSeek announced on Monday that it would temporarily restrict user registration “due to a large-scale malicious attack” on its service, but existing users will be able to log in as normal.
The Chinese artificial intelligence startup has been making a lot of noise in recent weeks as a fast-growing rival to OpenAI's ChatGPT, Google's Gemini, and other major AI tools.
Earlier on Monday, DeepSeek took over the coveted spot from rival OpenAI as the most downloaded free app in the US. appleApp Store, DeepSeek dethrones ChatGPT for its own AI assistant. This caused a sharp decline in global tech stocks.
Word about the company, which was founded in 2023 and released its R1 model last week, has spread to technology analysts, investors, and developers who are missing out on the hype and the ever-changing AI hype cycle that comes with it. It is said that there is a possibility that there will be widespread anxiety that this may occur. Guaranteed. Especially in the era of the generative AI arms race, tech giants and startups alike are racing to keep up in a market expected to exceed $1 trillion in revenue within a decade.
DeepSeek reportedly evolved from the AI research arm of a Chinese hedge fund in April 2023, focusing on large-scale language models and culminating in artificial general intelligence (AGI). AGI says OpenAI and its rivals are in hot pursuit.
Buzz around DeepSeek especially started to grow last week when the startup released R1, an inference model comparable to OpenAI's o1. It's open source, so it can be used by any AI developer, and users have praised its performance and inference capabilities, soaring to the top of app stores and industry leaderboards.
The startup's model was especially produced despite the US curbing chip exports to China for the third time in three years. Estimates vary depending on exactly how much DeepSeek's R1 costs or how many GPUs it has. Jefferies analysts estimate that training costs for the most recent version are just $5.6 million (assuming rental costs of $2 per 800 hours). This is less than 10% of the training cost. metaIt's a llama. ”
However, regardless of the specific numbers, this model is based on OpenAI, Anthropic, google And others.
As a result, questions abound in the AI industry, including whether the industry needs the ever-increasing astronomical funding rounds and billion-dollar valuations, and whether the bubble is about to burst.
shares of Nvidia It fell 11% on Monday, along with chipmakers. ASML It fell more than 6%. The Nasdaq fell more than 2%, with four big tech companies falling. meta, microsoft, apple and ASML are scheduled to report financial results this week.
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