Chinese AI Startup DeepSeek Challenges US Tech Giants with Cost-Efficient Chatbot

DeepSeek's R1 chatbot delivers competitive performance at a fraction of the cost, igniting debates over innovation, data ethics, and geopolitical implications.

DeepSeek's R1 chatbot rivals US models like ChatGPT in performance while requiring significantly less computational power and training costs.
US-based OpenAI accuses DeepSeek of using its models for training through a process called knowledge distillation, though evidence remains unpublished.
The release of R1 caused a temporary drop in US tech stock prices, highlighting concerns over China's growing influence in AI innovation.
Critics raise concerns about DeepSeek's data practices, with European regulators investigating potential violations of privacy laws and data transfers to China.
DeepSeek's reliance on censorship for politically sensitive topics, aligned with Chinese government policies, limits its appeal in Western markets.