8.8 C
Manchester
Wednesday, October 29, 2025
AIThe Rise of DeepSeek: Can China’s AI Startup Outpace OpenAI?

The Rise of DeepSeek: Can China’s AI Startup Outpace OpenAI?

At the close of 2024, a new AI disruptor emerged from China. DeepSeek, a Hangzhou-based startup, unveiled its R1 reasoning model, claiming to deliver performance comparable to OpenAI’s and Google’s models—at a fraction of the cost.

A New Approach to AI Development

Unlike its Western counterparts, DeepSeek trained its R1 model using only $5.6 million and 2,048 Nvidia H800 GPUs. This approach challenges the conventional belief that AI progress depends on massive budgets and cutting-edge technology.

Industry Shockwaves and Financial Impact

DeepSeek’s launch had a dramatic effect on global markets. A $1 trillion sell-off in tech stocks followed, with Nvidia’s stock dropping 17%. Meanwhile, DeepSeek’s AI assistant app became the most downloaded free app on Apple’s platform in major markets.

Security Concerns and Regulatory Scrutiny

As OpenAI, Google, and Meta analyze DeepSeek’s methodology, security concerns over its origins in China have surfaced. US regulators are investigating whether DeepSeek used restricted Nvidia chips, while industry leaders weigh the implications of China’s rapid AI progress.

Despite the controversy, DeepSeek’s rise highlights an industry-wide shift, says industry expert James Disney-May —one that prioritizes efficiency, affordability, and accessibility in AI development.

News Desk
News Deskhttps://www.businessmanchester.co.uk/
The Business Manchester News Desk team is a collective of experienced journalists and editors dedicated to delivering comprehensive business news and insights from the Manchester area and beyond. With a strong background in finance, technology, property, and innovation, our team ensures that our readers stay well-informed about the latest trends and developments in the business world. Through in-depth reports and insightful analysis, the Business Manchester News Desk team is committed to providing high-quality journalism to its audience.
Latest

A 2025 guide to Christmas gifts for mum

Stuck on what to get your mum this Christmas? We get it. She swears she doesn’t want anything, yet somehow manages to already own...

1 in 10 new drivers feel unprepared for car ownership

A new study has found that many new drivers felt ill-equipped to handle the practicalities of car ownership after passing their test. Data released from...

The 7 best industrial cleaning product suppliers for sparkling results

Maintaining a clean and hygienic environment is a lot more than just aesthetics and keeping spaces odour-free. Sticking to a regular cleaning schedule can...

Monitra Announces Alex Polley as Its New Chief Executive Officer

Monitra, a world leader in high-voltage condition monitoring and asset management systems, has confirmed the appointment of Alex Polley as its new Chief Executive...
Subscribe to our newsletter
Business Manchester will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Don't miss

Monitra Announces Alex Polley as Its New Chief Executive Officer

Monitra, a world leader in high-voltage condition monitoring and asset management systems, has confirmed the appointment of Alex Polley as its new Chief Executive...

1 in 10 new drivers feel unprepared for car ownership

A new study has found that many new drivers felt ill-equipped to handle the practicalities of car ownership after passing their test. Data released from...

The 7 best industrial cleaning product suppliers for sparkling results

Maintaining a clean and hygienic environment is a lot more than just aesthetics and keeping spaces odour-free. Sticking to a regular cleaning schedule can...

Empowering change: The role of local alcohol rehab facilities in recovery

Substance abuse remains a pressing issue in the United Kingdom, affecting individuals, families, and communities alike. According to recent statistics, approximately 1 in 11 adults in...

More News

The role of omnichannel communication in strengthening service delivery for critical infrastructure

Critical infrastructure systems support essential services such as power, water, transport, and healthcare. Because these sectors are interconnected, reliable communication is vital for smooth...

Industrial CT scanning explained: How 3D imaging is transforming quality control

Industrial CT (Computed Tomography) scanning is a powerful technology that uses X-rays to look inside objects without harming them. Think of it like a...

Social media brand collaborations: What’s changing in 2025

Brand collaborations are now an integral part of social media strategies. In 2025, they are moving beyond trends, becoming more innovative, creative, and meaningful....