KARACHI:
The rapidly advancing and widely accessible technology is not the exclusive domain of any nation or individual, but rather a global benefit, as demonstrated by the Chinese AI startup DeepSeek, which has stunned the world with its groundbreaking achievements.
According to The Economist, on January 27, stock markets in the U.S. and Europe experienced significant turmoil. Nvidia, America’s leading AI chip company, saw its share price drop by 17%, losing $600 billion in market value, marking the largest one-day loss in U.S. stock market history. Other companies in the AI supply chain, from data-center operators to networking gear manufacturers, also suffered substantial declines.
Monis Rahman, CEO of Dukan and Chairman of Rozee, as well as Co-Founder of Recruit AI, noted that the West, particularly the U.S., did not expect a Chinese AI model to rival top American models so quickly, especially just a year after its launch. The U.S. had previously blocked Nvidia from selling advanced AI chips to China to prevent such advancements.
DeepSeek has trained its impressive AI model with just one-twentieth of the budget spent by U.S. counterparts like OpenAI. Additionally, the cost of running DeepSeek is approximately 1/27th of OpenAI’s equivalent model. DeepSeek’s efficient algorithms reduce the need for expensive Nvidia GPUs and significantly lower power consumption, addressing a major limitation in AI development.
In a significant move, DeepSeek has made its model available under the MIT (Massachusetts Institute of Technology) license, allowing anyone to install and operate it on their own servers, ensuring data privacy. This development is expected to push other AI companies to adopt similar open-source approaches.
The rapid rise of DeepSeek marks a turning point in the AI industry, pushing towards the commoditization of foundational AI models, which have historically received billions in investment. The company’s success highlights how algorithmic innovation can deliver extraordinary results with far less computing power.
DeepSeek’s approach, including a Mixture of Experts (MoE) model, involves routing queries to smaller, more efficient models based on the nature of the question. This method has proven highly efficient, reducing costs and energy consumption significantly.
In a recent interview, Liang Wenfeng, the 40-year-old founder of DeepSeek, emphasized China’s shift from being a technological follower to a leader in innovation. While China has often been seen as lagging behind the U.S., the real divide lies in originality versus imitation, he argued. DeepSeek’s success has placed China firmly on the global AI map.
The U.S. sees staying ahead of China in the AI race as a strategic priority, with both nations vying to dominate global data interpretation. As a result, further measures like stricter chip embargoes are expected to curb China’s AI progress.
Globally, demand for AI has surged, and many software companies are racing to incorporate AI into their offerings, driven by both fear of being left behind and excitement about the new possibilities AI brings.
Rahman highlighted the launch of RozeeGPT.ai, Pakistan’s first AI-powered recruitment platform, which automates job descriptions, CV matching, and video interviews. With AI models becoming cheaper to train and use, and with lower energy consumption, new AI use cases are emerging, opening doors to more ventures and spurring innovation.
The rise of China as a prominent AI power, along with several other nations closely following, is seen as a boon for humanity. Rahman stated that AI should not be monopolized by one country, as every nation must recognize the strategic importance of developing its own models to avoid intellectual colonialism.
Dr. Mehmoodul Hassan Khan, a regional expert, drew a parallel between DeepSeek’s emergence and the launch of Sputnik, which triggered the space race between the U.S. and the Soviet Union. DeepSeek’s low-cost, efficient AI model is reshaping the industry, pushing the boundaries of AI ethics and transparency while also dismantling traditional barriers.
Furthermore, DeepSeek’s decision to offer its model as open-source has the potential to radically transform the AI ecosystem, benefiting numerous players outside of China. The platform is seen as a game-changer with socio-economic, geopolitical, and geostrategic implications, positioning it as a challenge to Western technological imperialism and a key player in the future of the Global South’s digitalization and AI advancements.
DeepSeek’s impact extends beyond the tech sector, even affecting the energy industry. The launch of its AI chatbot, which uses significantly less electricity than comparable U.S. models, has caused stock declines for U.S. energy companies, including uranium producers and natural gas pipeline operators. Chevron Corp and Constellation Energy Corp also saw sharp losses, signaling the potential disruption of traditional energy sectors by AI technologies.
In conclusion, DeepSeek’s AI breakthrough is ushering in a new era of AI economics, with profound implications for industries and nations worldwide.
