Experts Say DeepSeek Proves High-Performance AI Possible Without Silicon Valley’s Spending

A new player in the AI arena, DeepSeek, has unveiled an open-source language model, R1, that experts say is a game-changer in efficiency, raising questions about the future of AI development.

The DeepSeek Effect

Developed for under $6 million, DeepSeek’s R1 has not only outperformed established competitors in several tests but has also called into question the established big-spending approach prevalent in Silicon Valley.

This development has triggered a mix of optimism about democratized AI and fears of an AI stock bubble bursting, sending ripples throughout financial markets.

“Another DeepSeek is hiding in plain sight,” said Roi Ginat, CEO of Endless AI, a multimodal AI company, highlighting DeepSeek’s influence in making impactful AI with limited resources.

Ginat’s own company, EndlessAI, has been working on efficient video processing, echoing DeepSeek’s stand to using LLMs in practical, cost-effective ways.

Ginat told Benzinga that EndlessAI provides the tools to make existing models work smarter by using proprietary video transfer optimization which enables massive cost reduction for video processing, adding that this is complementary, not competitive, with what DeepSeek is doing.

Speaking with Benzinga, Satya Nitta, CEO of Emergence AI, an AI orchestration company, echoed the sentiment, calling DeepSeek R1 a “meaningful advance in broadening access to AI reasoning.”

Nitta emphasized the importance of open-source solutions that are not …

Full story available on Benzinga.com