DeepSeek's Efficient AI Model Challenges Industry's High-Cost Paradigm
Overview: DeepSeek R1 and V3 Large language Models (LLMs) are open-source and substantially cheaper to use than ChatGPT, with API costs being up to 96% lower than ChatGPT’s o1. DeepSeek’s compute-efficient AI models rivaling the best models on performance challenges the long-standing AI industry notion that achieving cutting-edge large-scale AI models requires enormous financial investments and brute-force compute power. This research note takes a look at how DeepSeek achieved the cost efficiency and what are the implications of the same.
Table of Contents:
- Executive Summary
- DeepSeek’s Portfolio, Performance & Progress
- How did DeepSeek Achieve Cost Efficiencies
- A Word of Caution
- What does this mean and why does it matter?
- Key Takeways
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Author
Wei Sun
Wei is a Principal Analyst in Artificial Intelligence at Counterpoint. She is also the China founder of Humanity+, an international non-profit organization which advocates the ethical use of emerging technologies. She formerly served as a product manager of Embedded Industrial PC at Advantech. Before that she was an MBA consultant to Nuance Communications where her team successfully developed and launched Nuance’s first B2C voice recognition app on iPhone (later became Siri). Wei’s early years in the industry were spent in IDC’s Massachusetts headquarters and The World Bank’s DC headquarters.
Mohit Agrawal
Mohit is responsible for tracking Digital Transformation and Internet of Things (IoT) at Counterpoint Research. He has over two decades of rich industry experience having worked with large tech companies like Accenture, Airtel, Nokia, and Microsoft in the past. Before joining Counterpoint, Mohit was the co-founder & CEO of a start-up in the competitive and market intelligence space utilizing big data and AI. He is a keen follower of the developments in devices and key internet technologies like IoT, Blockchain, AI, etc.
Mohit is an engineer, MBA and a certified project management professional. He is based out of The Hague in Netherlands.
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