Has the race for AI begun? The Ministry of Digital Transformation responds to the new Chinese app DeepSeek
Kyiv • UNN
The new Chinese AI DeepSeek, created for $6 million, has beaten ChatGPT in the App Store. Ukraine's Ministry of Digital Transformation considers this an evolution, not a revolution, despite the significant drop in tech giants' shares.
The Ministry of Digital Transformation of Ukraine responded to the emergence of a new Chinese DeepSeek and noted that "this is not a revolution, but an evolution" that "is unlikely to affect the race to create AGI," UNN reports.
Details
Briefly about the new Chinese app:
DeepSeek has overtaken ChatGPT in the App Store ranking.
DeepSeek R1 (an open AI model) was developed in 2 months and for only $6 million, which is much cheaper than the billions spent by Western companies. R1 queries are 98% cheaper than ChatGPT.
Despite US restrictions on the export of powerful chips, DeepSeek used affordable Nvidia H800s along with its own innovations.
Nvidia shares fell by 12%, while Meta and Microsoft fell by 4% due to the DeepSeek breakout. European companies ASML and Tokyo Electron also suffered losses.
We think DeepSeek is not a revolution but an evolution: they have successfully combined existing developments and made it cheaper. But it is unlikely to affect the race to create AGI (super AI), which remains the main goal of the industry. The current market reaction may be exaggerated, but investors are beginning to think about the effectiveness of large expenditures in AI (remember 500 billion on Stargate)