Deep discount: DeepSeek can alter the rules of artificial intelligence game

In geopolitical terms, the United States will have to rethink its strategy of trying to maintain an edge in AI by denying access to computing resources outside the US and a few chosen allies

The recent release of two open source artificial intelligence (AI) programmes and chatbots from Chinese company DeepSeek has caused a tectonic shift in perceptions. DeepSeek achieved several large technical breakthroughs in training its R-1 and V-3 algorithms for a claimed cost of around $5.6 million, which is a fraction of the hundreds of millions required to develop ChatGPT, Grok, Claude, Llama and other large language models (LLMs). The new AI has performance standards rivalling the above products. But it was developed on relatively low-end chips, which cost a lot less than the premium graphic processing units (GPUs) used for ChatGPT.