DIGIVESTASI - A lesser-known artificial intelligence (AI) laboratory from China is said to have raised concerns in Silicon Valley, the center of the U.S. technology industry. This is triggered by the release of the latest AI model from the lab, which is claimed to outperform AI products developed by leading U.S. companies. In another surprising development, the Chinese AI model named DeepSeek was created at a much lower cost, using less powerful chips.

According to a CNBC report on Monday (January 27, 2025), DeepSeek AI recently launched a large, open-source language model for free in early December. The development of this model took DeepSeek only two months and cost less than USD 6 million. They also used Nvidia’s H800 chip, which has a low capacity, but successfully built an AI model considered capable of competing with products from global companies today.

This progress has raised concerns in the U.S., which is beginning to worry about losing its dominance in artificial intelligence technology. Earlier, DeepSeek also launched DeepSeek r1, a reasoning model that outperformed a similar model, O1, from OpenAI in a series of third-party tests.

Microsoft CEO Satya Nadella, during the World Economic Forum in Davos, Switzerland, last Wednesday, addressed DeepSeek. "Looking at DeepSeek's new AI model, I was very impressed with how they developed open source so effectively and efficiently in computing," Nadella said. He also emphasized the importance of a serious response from U.S. tech companies to the development of AI from China.

While DeepSeek has great potential, which is believed to surpass U.S. companies, it still faces challenges from semiconductor and chip restrictions imposed by the U.S. government on China. These restrictions cut off China’s access to Nvidia’s advanced H100 chips. However, DeepSeek’s latest achievements suggest that the lab is starting to find ways to overcome these restrictions, proving that semiconductor export barriers are not hindering their progress.

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