Recently, Deepseeka generative Artificial intelligence (Genai) Chatbot, disturbed the AI industry. The China-based company was founded in 2023, but by January 24, hardly anyone had heard of it. Then, almost overnight, Deepseek became the hottest topic of discussion in the AI world.
What made Deepseek such a big conversation was the claim that the AI model was built for only $ 5.58 million with 2,000 Nvidia (Nasdaq: NVDA) H800 GPUs and that it works just as well as Openai’s GPT-O1, a model that costs billions to do. If the Deepseek team tells the truth, it raises a major issue for American investors and technology companies: Why does US companies spend billions when Deepseek probably drew this for a fraction of the cost?
Developers have also played a crucial role in making Deepseek popular, especially because it is cheaper to build on Deepseek than at Ouena.
Both of these elements have led to a variety of concerns about Deepseek use. Some are worried about data secrecyAs reports have emerged that Deepseek captures user data from Americans and stores them on Chinese servers. In addition, no one knows how the information used by a Genai system or which it is sold.
In addition, skeptics question whether the company really built this model for only $ 5.58 million or whether they hide the actual costs. If the company spent more to get the model built, it questions how they bypassed them Us chip restrictions. Another controversy is a new Investigation led by Microsoft (Nasdaq: MSFT) into whether Deepseek stole Openai research and data to develop its model.
Each of these articles has deep consequences for Deepseek. If the company in any way circumvents US chip export restrictions, it will probably have legal consequences or any other type of sanction to do so. If Deepseek simply copies Openai’s work, it seems to be much less innovative than it was originally proposed. This would probably result in Deepseek losing some credibility, as it would be framed as a copycat rather than an innovative new participant in the AI industry.
Microsoft, Meta and Openai doubles AI expenses
Despite concern that the technical industry and investors express about AI -technical giants in the United States are overvalued and over expenditure, it does not look like the trend will stop at any time. Technical giants have actually suggested that they will double rather than withdraw in the midst of this news.
During their recent income call, Microsoft and Meta (Nasdaq: Meta) spent a combined $ 37.4 billion, mainly on AI infrastructure, during the fourth quarter of 2024. The money was mainly against chips, data centers and everything needed to keep their AI business going and expanding.
For 2025 has Microsoft engaged to spend $ 80 billion on AI infrastructure, and meta plan to spend Up to $ 65 billion. Mark Zuckerberg says that all these expenses are a long -term game that will be a strategic advantage in the long term.
This massive expenditure comes at a time when Deepseek claims that it built a GPT-O1 level model for just $ 5.58 million, which has caused many people to question why companies like Openai and Microsoft need billions. The reason is that the AI business takes a significant amount of computer, data and energy to exercise and distribute-a amount that can easily encounter billions for a large-scale operation. It may actually be that it’s not just American companies that need to collect and spend billions without it all AI companies that seriously compete in space need to spend that amount. Skeptics think that Deepseek’s cost claim is far away from the actual number and that they either hide their real infrastructure costs or benefit from unveiled support.
It is not only Microsoft and Meta that increase their AI expenses, Openai is reportedly wishes to collect $ 40 billion In a new funding round that values the company at $ 340 billion. This shows that they are not worried about an assumed cheap competitor’s ability to really change the industry’s operations.
Ouenai rolls silent out chatgpt gov
Although it was drowned by all the Deepseek -Surr, this week Ouenai released chatgpt gov. This new version of ChatGPT is designed specifically for authorities, which allows them to run AI models on their own private cloud infrastructure with Azure Commercial or Azure Government Cloud.
Governments and large companies hesitate to adopt Genai due to privacy problems. No one wants their sensitive data to be used to train a chatbot, and there is always the risk that private information included in an AI tool may end up in a future response. This is why many companies and authorities have directly banned their employees from using chatgpt for work -related tasks.
With Chatgpt Gov, Openai tries to solve that problem. Although it is boring in comparison to the Deepseek uprising and the fall it has caused, it is easy to use AI products that meet governments and companies have been long and few in between.
By giving authorities a way to operate AI models on their own secure clouds, governments can use Genai with confidence that they can handle their own security, privacy and compliance requirements to avoid Potential risks and pitfalls Previously prevented them from using these systems.
In order for artificial intelligence (AI) to function directly within the law and thrives on growing challenges, it must integrate a corporate blockchain system that ensures data input quality and ownership – which means that it must keep data secure and at the same time guarantee the immutability of data. Check out COINGEEK’s coverage on this new technology to learn more Why Enterprise Blockchain will be the spine in AI.
Watch: Transformative AI applications will
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