China’s startup DeepSeek has shocked the market this week after releasing a cheap rival to O1 of Openai. SiliconValley responded to the release of DeepSeek after seeing Panic and AW.SOME’s AI startups to succeed in Deepseek’s open source.
In the technology industry, especially for AI, the tide may change quickly.
Last week, Openai was the industry leader, developing what many people saw as the most advanced AI model in the market, which led to a rapid rising reputation.
This week, Silicon Valley turned to Deepseek, a more expensive competitors, and its status was a problem.
Chinese companies have recently released a challenger for O1 inference models, called R1. The user who tested both stated that the R1 would be comparable to the O1 function and would appear at a fairly low cost.
The news shocked the market on Monday, led to the sale of stocks that wiped almost $ 1 trillion in market capitalization. AI Insiders stated that Frenzy was guaranteed. The method of Deepseek is an industry game changer.
CEO, a startup company that promotes the AI boom by providing hardware, security services, and architectural agents, told Business Insider that the success of DeepSeek would increase the opportunity for small and medium -sized enterprises to prosper.
Roi Ginat, a co -founder and CEO of Endlessai, who develops video AI assistantroids, stated that DeepSeek’s success could expand the pool of those who could develop AI technology.
“Deepseek’s success is the democratization of AI development. AI development can compete with a small team with limited resources with a major high -tech company,” GINAT wrote in email. Masu. “This is a catalyst of innovation waves from startups and researchlab, which were previously considered to be around.”
Openai may not lose its position in the industry, but GINAT has said that its role may change. “The industry has witnessed attractive tension among the two competing visions. One focuses on pursuing artificial general information (AGI) through more and more powerful and comprehensive models. The other is to emphasize the efficient model and method for a specific use case and a method. “This tension promotes innovation in both directions and exists in large companies.”
SecurityPal’s CEO Pukar Hamal, who supports companies that prefer Openai’s complete security questionnaire, stated that the industry should relieve the expectations of immediate changes.
“If the Deepseek team can reduce the cost of training and reasoning by one digit, it could cause a much wider AI development than the analyst expected,” Hamal told Business Insider. “Conversely, some severe revenue calls are needed to reconsider the tremendous GPU investment seen by the largest AI player in 2025.”
Meta recently committed $ 60 billion to AI infrastructure investment. President Donald Trump announced Stargate, a joint venture between open, Oracle, and Softbank last month, and invests $ 500 billion in AI infrastructure nationwide.
One of the biggest discussions among the AI innovators is whether the open source model that the general public can access and correct is more likely to promote break -through than a closed source model. Openai says that while DeepSeek models are open source, they keep the model closed for safety.
“Deepseek R1 has expanded access to AI reasoning and focuses open source power, and spotlights the power of open source, spots, said Deepseek R1, a co -founder and CEO of ENGERGENCE AI. It is a meaningful progress in setting a new benchmark for. “
Hamal said that even if it ultimately dominated the industry, we should still approach open source development.
“Unknown alignment” open source “models have serious public safety and regulation questions. If Deep Shek’s mobile app continues to climb the chart, he may be a discussion similar to the recent call of blocking Tactoku in the United States, “he said. David Sachs, an advisor to the White House, is also using an open model to train Fox News to Deep Shek News, saying “possibilities” to train their own AI models. When he said, he expressed concern about how to train Deep Shek.
Still, Hamal said, “Open usually wins in the long term,” said Hamal. “If DeepSeek is helpful to reset the increasingly closed basic model market, it can be a net or positive thing.
However, if AI executives have one lesson that has been away from this week, you can do more with smaller resources.
“For me, the competition itself is not more important than verification of a wider principle. The AI model is built at a more affordable price for me,” the competition itself is built at an affordable price. It can be applied much beyond. “
