DeepSeek Delivers Mixed Bag of Benefits, Concerns to AI Industry

While the tool may require less chips to operate and demand smaller fees to run, it may also carry security risks.

By Paul Smaglik
Jan 27, 2025 11:00 PMJan 28, 2025 12:11 AM
Code programming
(Credit: lilik ferri yanto/Shutterstock)

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When talking about technology, pundits often use the word “disruptive” as a compliment. In the case of DeepSeek, a “large language model” that is now challenging ChatGPT for AI supremacy, the term carries a mixed message.

Financial news about the Chinese LLM delivered a blow to tech stocks for a few reasons. First, the program appears to require less computer processing power than its competitors. Companies like Nvidia had seen their stock prices soar in recent months, because the conventional wisdom said that fueling the AI revolution would require lots and lots of specialized chips like the one the company manufactures. Such stocks tumbled when performance data about DeepSeek was published.

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