AI/Artificial intelligence has been a hot topic ever since OpenAI released its ChatGPT over two years ago. A Chinese competitor, called DeepSeek, has made waves with its own offering this week. The app went viral becoming the #1 downloaded app on Google Play Store and Apple’s App Store.
Observers marveled at a product that reportedly matched or surpassed its Western competitors in several benchmarks in a short time – despite using less advanced Nvidia chips. The Biden administration banned the export of Nvidia’s top-of-the-line chips to China to impede that country’s AI ambitions.
While some publications cautioned users against using DeepSeek’s app due to data privacy concerns, it’s important to note that privacy issues are not unique to Chinese companies. The U.S. government has access to data from American tech companies through various laws and programs.
Let’s address several misconceptions:
- While DeepSeek did admit to using secondary and less powerful chips, it did not deny having previously acquired and deployed Nvidia’s top chip, the H100. In fact, many reports pointed to DeepSeek having amassed an inventory of the same prior to the ban going into effect.
- The experts advocating for non-usage were also seemingly off the mark. We already know through the NSA revelations and public knowledge laws, like the Patriot Act, that privately generated data entrusted to US tech companies is shared with the US Government and, from there, other allied intelligence agencies. Many point out that those are not equivalencies. Fair enough. Nonetheless, it does bear pointing out as all the stories I read omitted the fact.
- Moreover, does anyone remember Cuil? The search engine by two former Google search employees launched sometime in 2008 and immediately received wide press coverage including for its main thrust that it had the most indexed pages of any search engine, Google included. Cuil was everywhere seemingly for a few weeks, yet shut down and went out of business in 2010. That is not to say that DeepSeek will meet the same fate as Cuil. It just serves as a reminder that the race is a marathon and not a sprint and proof should be in a pudding older than a week.
In the world of AI data is everything. Consistently acquiring and synthesizing it is the determinant of an AI’s success – as far as technology goes, that is – as the myriad of models out there all seemingly work fine. Yet, given the ongoing data ingestion requirements a winner is never assured. In fact, as of today another Chinese company Alibaba’s Qwen-2.5, beats Anthropic’s Claude 3.5 Sonnet, Google Gemini-2 Flash and OpenAI’s GPT-4o in most benchmarks. It also surpassed DeepSeek’s results. It is important to note that DeepSeek R1 used other available datasets to achieve its operation rather than going out there and ingesting the universe of all data. This also implies that DeepSeek is subject to the same hallucinations as its progenitors.
Finally, and most importantly, for the viability of AI and the universe of GenAI users, it is imperative to point out the bottom-line: DeepSeek is good news for all AI including the more established competitors. How? Firstly, it brings AI further into the public consciousness. The articles and publicity bring GenAI to a wider audience and one that is global. Secondly, let’s remember that DeepSeek was put to work serving its founder’s (Liang Wenfeng) main occupation, namely the High-Flyer hedge fund. By all accounts, the man and his hedge fund have been wildly successful thanks to the power of artificial intelligence, which is now in your, and my, hands. Can anyone think of a better validation and advocacy for AI technology and its myriad of possibilities and use cases?
Things That Need To Go Away: Judging AI by news cycles, rather than focusing on its engagement and market share capture across various use cases and verticals.