Why DeepSeek could mark a turning point for Silicon Valley on AI
CNN
Silicon Valley is coming to grips this week with the realization that creating an advanced artificial intelligence model may no longer be as specialized a task as was once believed.
Silicon Valley is coming to grips this week with the realization that creating an advanced artificial intelligence model may no longer be as specialized a task as was once believed. The wakeup call came in the form of DeepSeek, a year-old Chinese start-up whose free, open-source AI model, R1, is more or less on par with advanced models from American tech giants — and it was built for a fraction of the cost, apparently with less advanced chips and it demands far less data center power to run. Until now, the widely accepted wisdom in the US tech world was that American tech giants could stay ahead by spending billions of dollars, amassing advanced chips and building out huge data centers (despite the environmental cost). Essentially, because they’re among the richest companies in the world, they believed they could throw more resources at the problem than anyone else and come out on top. Now, all of that has been called into question. And tech giants are facing tough questions from Wall Street. The name of the AI game may no longer be winning with the most expensive, ever-more powerful models. “The paradigm is shifting,” said Zack Kass, an AI consultant and former OpenAI go-to-market lead.
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