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SUNDAY SCIENCE: HOW CHINA’S NEW AI MODEL DEEPSEEK IS THREATENING
U.S. DOMINANCE
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Jasmine Wu, Deirdre Bosa
January 24, 2025
CNBC
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_ The new developments have raised alarms on whether America’s
global lead in artificial intelligence is shrinking and called into
question big tech’s massive spend on building AI models and data
centers. _
, CNBC
A little-known AI lab out of China has ignited panic throughout
Silicon Valley after releasing AI models that can outperform
America’s best despite being built more cheaply and with
less-powerful chips.
DeepSeek, as the lab is called, unveiled a free, open-source
large-language model in late December that it says
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only two months and less than $6 million to build, using
reduced-capability chips from Nvidia called H800s.
The new developments have raised alarms on whether America’s global
lead in artificial intelligence is shrinking and called into question
big tech’s massive spend on building AI models and data centers.
In a set of third-party benchmark tests, DeepSeek’s model
outperformed Meta [[link removed]]’s Llama 3.1,
OpenAI’s GPT-4o and Anthropic’s Claude Sonnet 3.5 in accuracy
ranging from complex problem-solving to math and coding.
DeepSeek on Monday released r1, a reasoning model that
also outperformed
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many of those third-party tests.
“To see the DeepSeek new model, it’s super impressive in terms of
both how they have really effectively done an open-source model that
does this inference-time compute, and is super-compute efficient,”
Microsoft CEO Satya Nadella said at the World Economic Forum in Davos,
Switzerland, on Wednesday. “We should take the developments out of
China very, very seriously.”
DeepSeek also had to navigate the strict semiconductor restrictions
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the U.S. government has imposed on China, cutting the country off from
access to the most powerful chips, like Nvidia’s H100s. The latest
advancements suggest DeepSeek either found a way to work around the
rules, or that the export controls were not the chokehold Washington
intended.
“They can take a really good, big model and use a process called
distillation,” said Benchmark General Partner Chetan Puttagunta.
“Basically you use a very large model to help your small model get
smart at the thing you want it to get smart at. That’s actually very
cost-efficient.”
Little is known about the lab and its founder, Liang WenFeng. DeepSeek
was was born of a Chinese hedge fund called High-Flyer Quant that
manages about $8 billion in assets, according to media
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But DeepSeek isn’t the only Chinese company making inroads.
Leading AI researcher Kai-Fu Lee has said
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startup 01.ai was trained using only $3 million. TikTok parent
company ByteDance on Wednesday released
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update to its model that claims to outperform OpenAI’s o1 in a key
benchmark test.
“Necessity is the mother of invention,” said Perplexity CEO
Aravind Srinivas. “Because they had to figure out work-arounds,
they actually ended up building something a lot more efficient.”
Life on Mars? NASA Rover Finds Breakthrough Supporting the Case.
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By Timothy Malcolm
Chron
Scientists say it may have billions of years ago.
Jan 25, 2025
* Science
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* computing
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* artificial intelligence
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* China
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* United States
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