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DeepSeek's Open-Source Model Reshapes Global AI Industry

The Chinese startup's R1 model has driven a shift toward open-source strategies, challenging proprietary systems and redefining AI innovation and adoption worldwide.

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The Deepseek logo is seen in this illustration taken Jan. 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • DeepSeek's R1 model, released under an MIT License, offers high performance at a fraction of the cost of proprietary systems like OpenAI's ChatGPT.
  • Major Chinese tech companies, including Baidu and Tencent, have adopted open-source strategies in response to DeepSeek's success.
  • Kai-Fu Lee, founder of 01.AI, describes open-source AI as the future, presenting a significant challenge to closed-source models like OpenAI's.
  • DeepSeek's rise has been likened to an 'Android moment' for AI, enabling faster innovation and broader adoption globally.
  • Despite DeepSeek's disruption, OpenAI's ChatGPT remains popular, with over 400 million weekly active users as of February 2025.