DeepSeek Upends AI Investment Narrative

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DEEPSEEK

DeepSeek Upends AI Investment Narrative

A Chinese AI model, DeepSeek, rocked markets this week.

DeepSeek is a suite of Large Language Models developed by a Chinese quantitative hedge fund, High-Flyer, which initially focused on applying AI to financial markets. In 2023, the firm spun off DeepSeek as an independent research group dedicated to developing artificial general intelligence.

The company’s latest model, R1, has upended the AI investment narrative—showing that breakthroughs in large language models don’t require billions in computing power.

DeepSeek claims R1 was trained without Nvidia’s most advanced chips and at a cost of about $6 million — a fraction of what the most advanced models cost, while delivering similar functionality.

Now, some experts have called out this number, saying that it took a lot of trial and error to…