DeepSeek Challenges Big Tech's AI Spending with Low-Cost Model

Reported 2 days ago

Chinese startup DeepSeek is putting pressure on U.S. tech giants by demonstrating that its AI model can be built for under $6 million and outperform competitors, raising questions about the billions being spent by companies like Nvidia and Microsoft on AI. Analysts believe this cheaper alternative could spark a price war in the AI market, while concerns about data privacy and U.S.-China relations may hinder its adoption in America. As major tech firms prepare to report their earnings, investors are eager for clarity on their AI strategies.

Source: YAHOO

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