DeepSeek burst into public consciousness when the Chinese tech firm claimed to have made substantial progress in training its AI for a fraction of the cost of its American competitors and with a relatively low number of highly-advanced chips. As a result, the stocks in major AI companies such as OpenAI and advanced microchip manufacturers such as Nvidia took a pounding, losing around $1tn in value overall, before recovering some of those losses once the dust had settled. The emergence of DeepSeek came shortly after President Donald Trump unveiled his...

By now, there is a good chance that you’ve heard of DeepSeek, a generative AI app from a Chinese company that’s competing with the likes of OpenAI’s ChatGPT, Google’s Gemini and Meta AI. But a big difference between DeepSeek and these U.S.-based apps is that DeepSeek’s developers claim that it took less than $6 million to develop, and unlike American companies, the Chinese developers weren’t able to use the latest and greatest processors. • Magid: ChefMaker makes me a better cook but not a ‘chef’ • Magid: Looking back at...

Move over, DeepSeek. There’s a new AI champion in town — and they’re American. On Thursday, Ai2, a nonprofit AI research institute based in Seattle, released a model that it claims outperforms DeepSeek V3, one of Chinese AI company DeepSeek’s leading systems. Ai2’s model, called Tulu3-405B, also beats OpenAI’s GPT-4o on certain AI benchmarks, according to Ai2’s internal testing. Moreover, unlike GPT-4o (and even DeepSeek V3), Tulu3-405B is open source, which means all of the components necessary to replicate it from scratch are freely available and permissively licensed.

This story incorporates reporting from Business Insider, New York Post and Investopedia. The White House’s ongoing concern about artificial intelligence ethics and security gained new traction as the AI czar accused DeepSeek of using OpenAI’s models for developing its own competing AI systems. On January 28, 2025, reports emerged that DeepSeek allegedly employed a technique called “distillation” to replicate OpenAI’s language models, raising potential legal and ethical concerns. OpenAI has since stated that it possesses evidence suggesting misuse of its proprietary technology by DeepSeek.

When DeepSeek burst onto the scene this year the first reaction was shock. How did a little-known company achieve state-of-the-art AI performance for a fraction of the cost? Then came schadenfreude: Isn’t it funny that the world’s richest companies, currently spending hundreds of billions on massive data centers to train AI models, got shown up by this Chinese upstart? Now comes the backlash: This CHINESE upstart? Just a few days after DeepSeek’s app surpassed OpenAI’s ChatGPT on the Apple App Store, sending shares of American tech companies into a slump,...

The fast-rising Chinese AI lab DeepSeek is sparking national security concerns in the U.S., over fears that its AI models could be used by the Chinese government to spy on American civilians, learn proprietary secrets, and wage influence campaigns. In her first press briefing, White House Press Secretary Karoline Leavitt said that the National Security Council was "looking into" the potential security implications of DeepSeek. This comes amid news that the U.S. Navy has banned use of DeepSeek among its ranks due to “potential security and ethical concerns.” DeepSeek, which...

© 2024 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information

FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

OpenAI has accused Chinese AI start-up DeepSeek of using its proprietary models to train an open-source competitor, raising concerns over potential intellectual property violations.

The Financial Times reported that OpenAI found evidence of "distillation," a technique that enhances smaller models by leveraging outputs from larger, more advanced ones. OpenAI suspects DeepSeek employed this method to replicate its technology at a lower cost, further intensifying scrutiny over AI model security and competitive ethics.

Big Tech’s multi-billion dollar spending on artificial intelligence will be under investor scrutiny this week — even more so after China’s DeepSeek sent shockwaves through Wall Street and Silicon Valley with a cheap yet competitive AI model. Ahead of earnings results from Microsoft, Meta, and Apple, the AI-driven stock rally lost $1 trillion in value after the Hangzhou-based AI startup demonstrated AI reasoning models on par with OpenAI and Anthropic. Last week’s release of DeepSeek-R1 sparked a global sell-off of tech stocks, with Nasdaq, Dow Jones Industrial Average, and S&P500...

You have been granted access, use your keyboard to continue reading. Tap the Play button at the top of any article to hear it read aloud. Asked about sensitive topics, the bot would begin to answer, then stop and delete its own work. It refused to answer questions like: “Who is Xi Jinping?” As the world scrambles to understand DeepSeek — its sophistication, its implications for the global A.I. arms race — one natural question has arisen: Given that it is made by a Chinese company, how is it dealing...