Meet The Chinese AI Company Trump Says Is A 'Wakeup Call' For The U.S.

A Chinese company called DeepSeek, which recently open-sourced a large language model it claims performs as well as OpenAI’s most capable AI systems, is now the white hot center of attention for the AI community. Its tech is being lauded as one of the best open-source challengers to top American AI models, stoking anxieties about China’s formidability in the intensifying international AI race and spurring U.S. startups to re-examine their own work after a foreign rival seemingly did so much more with so fewer resources.

In late December, the small Chinese lab, based in Hangzhou, released V3, a language model with 671 billion parameters, which was reportedly trained in two months for just $5.58 million. That’s a cost orders of magnitude less than OpenAI’s GPT-4, a larger model at an estimated 1.8 trillion parameters, but built with a $100 million price tag. Last week, DeepSeek threw down another gauntlet, releasing a model called R-1, which it claims rivals OpenAI’s o1 model on what’s called “reasoning tasks,” like coding and solving complex math and science problems. OpenAI charges users $200 per month for such models; DeepSeek offers its own for free.

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