Amazon Cloud Offers DeepSeek AI Models As Meta Open Source Rivalry Grows

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Amazon has teamed up with Microsoft to offer DeepSeek's low-cost, open-source AI models. This is a big move since DeepSeek, a Chinese startup backed by the hedge fund High Flyer, is now competing with U.S. companies like OpenAI, Anthropic, Google, and Meta. DeepSeek is becoming a serious challenger to Meta, which has been the leader in open-source AI models.



Amazon Web Services (AWS) has been giving developers access to models from companies like Meta and Anthropic. Amazon has also invested $8 billion in Anthropic. But with prices for renting AI models through cloud services dropping quickly, things are getting more competitive.

AWS now lets developers use DeepSeek's models to build and scale AI applications with little infrastructure needed. This offers a cheaper and efficient way to experiment with generative AI ideas.

DeepSeek is creating some tension, especially with Meta, which recently talked about the rising competition. Meta's CEO Mark Zuckerberg mentioned that the emergence of DeepSeek could affect the global open-source AI standard, especially from a national security perspective.

The competition is also heating up between the U.S. and China in the AI race. The U.S. is pushing to stay ahead in developing AGI, or artificial general intelligence, which is considered the next level of AI.

Open-source AI models, like DeepSeek's, have been evolving quickly. These models are free to use and can be built upon by developers. Because of this, new, more efficient models are coming out, lowering the cost of running AI systems.

Prices for training AI models are falling fast. A report from JPMorgan points out that the cost of using DeepSeek's R1 model for inference is much lower than OpenAI's. In fact, AI inference costs have been dropping by about 85% to 90% each year. This has made AI more accessible and opened up new possibilities for developers.