January 27th, 2025

How a top Chinese AI model overcame US sanctions

DeepSeek, a Chinese AI startup, launched DeepSeek R1, an open-source model matching ChatGPT's performance, developed under US sanctions, emphasizing efficiency and collaboration, with smaller versions for local use.

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How a top Chinese AI model overcame US sanctions

DeepSeek, a Chinese AI startup, has launched DeepSeek R1, a new open-source reasoning model that reportedly matches or exceeds the performance of OpenAI's ChatGPT o1 on various benchmarks while being more cost-effective. This achievement is notable given the US sanctions limiting access to advanced chips, which have instead spurred innovation among Chinese companies. DeepSeek adapted its training processes to optimize GPU usage, utilizing a stockpile of Nvidia A100 chips acquired before the sanctions. The model is praised for its efficiency in handling complex reasoning tasks, particularly in mathematics and coding, employing a "chain of thought" approach similar to ChatGPT. Despite being relatively unknown, DeepSeek's collaborative culture and focus on open-source principles have positioned it as a unique player in the competitive Chinese AI landscape, which is dominated by larger tech firms. The company has also released smaller versions of R1 that can run on local devices, further enhancing accessibility. The success of DeepSeek highlights a shift in the Chinese AI sector towards greater efficiency and resourcefulness in response to external pressures, with a growing emphasis on open-source development.

- DeepSeek R1 matches or surpasses ChatGPT o1 in performance.

- The model was developed despite US sanctions on advanced chips.

- DeepSeek emphasizes efficiency and collaboration in its research culture.

- Smaller versions of R1 are available for local use, increasing accessibility.

- The Chinese AI sector is increasingly adopting open-source principles.

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