China's DeepSeek has released the DeepSeek-R1 open-weight model, a reasoning model offering similar capabilities to OpenAI o1 at only 5% of the development budget for ChatGPT.
Although DeepSeek-R1 was trained using Nvidia GPUs, it uses less computing power and fewer microprocessors resulting in a significantly lower cost, which adds up to a fraction of the more costly models in the market today.
The rise of the DeepSeek-R1 coincides with the introduction of a new executive order by the US government to remove AI policies and directives that hinder American AI innovation.
This could put the US into a more vulnerable position as it removes risk-based and sector-specific approached to focus on accountability and safety.
DeepSeek exhibits ingenuity over money as it responds to restrictions on accessing GPUs with their limited resources, emphasising that too much financial support may not always be the solution.
The DeepSeek-R1 model, although censored by the Chinese government imposes limitations, highlights an alternative method for AI innovation through mixed techniques adopted by Chinese companies leveraging the limitations of a technology with a massive carbon footprint.
The restrictions put on the sale of US chips by Nvidia and AMD to China can be seen as a double-edged sword in the global race for AI innovation, resulting in both benefits and drawbacks to companies and regions seeking to make strides in AI.
Ingenuity will always play a significant role as the debate over the best method for AI innovation rages on, with techniques such as mixed experts and limited resources proving just as effective as throwing limitless funds at a problem.
If the US decides to ease up on responsible AI policies to maintain its AI leadership, it could find itself in a weaker position in the long run, leaving room for other countries to thrive and make significant contributions to the sector.
DeepSeek could ignite the debate over AI innovation by highlighting the alternative methods, calling governments and other companies to action to adopt a more responsible approach.