Alibaba and ChatGPT launch new AI models to tackle DeepSeek popularity

[Admin]

The competition in artificial intelligence is getting intense, especially with the rise of DeepSeek, a Chinese startup. DeepSeek has launched an AI model that claims to compete with major U.S. companies like OpenAI and Meta, but at a much lower cost.

Former President Trump said DeepSeek's success should be a wake-up call for U.S. tech companies. He announced a $500 billion investment plan to boost AI development in the U.S. and stay ahead of other countries.

DeepSeek is causing a stir because it says it costs less than $6 million to train its DeepSeek-V3 model, while OpenAI spent around $100 million on its latest ChatGPT model. After DeepSeek's release, Nvidia's stock took a huge hit, though it's since bounced back.

Why is DeepSeek getting so much attention? The company uses less powerful chips, which makes its AI much cheaper to run—up to 50 times cheaper than the massive investments from U.S. companies. Plus, DeepSeek's AI is open-source, meaning it's free to use and tweak. This made it the most downloaded free app on the Apple App Store, even surpassing ChatGPT and Google.

DeepSeek, founded in 2023, has two main AI models, DeepSeek-V3 and DeepSeek-R1. These models are said to be just as advanced, if not more, than many top U.S. AI models.

The AI space is getting even more crowded. Alibaba, another Chinese tech giant, recently released its Qwen 2.5 AI model, claiming it outperforms DeepSeek. Meanwhile, OpenAI has launched its ChatGPT Gov AI tool for government agencies, which comes with extra safety measures.

However, DeepSeek is facing some challenges. Reports suggest it used OpenAI's models to train its AI, and there are concerns about the accuracy of its chatbot, which has been criticized for providing false or vague answers. DeepSeek has also faced cyberattacks, which temporarily disrupted user registration. Given its links to China, there are ongoing security concerns, similar to those surrounding apps like TikTok.