Forbes January 28, 2025
Steve McDowell

Chinese AI company DeepSeek made waves in the technology industry with its claims of achieving performance comparable to leading AI models while dramatically reducing training infrastructure requirements.

While the news led to a historic sell-off of technology stocks, the implications are far from negative, even for core technology providers like Nvidia. If DeepSeek’s claims are true – and that hasn’t yet been validated – the revelations remove the almost insurmountable cost barriers to AI training, opening the door to much broader adoption and competition in the market.

The DeepSeek Announcement

DeepSeek unveiled its DeepSeek-R1 model, which it claims rivals leading AI systems like OpenAI’s GPT-4 and Meta’s Llama. The importance of the news is not on its model and how...

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