Sometimes a new technology comes along that immediately shakes the world. The release this week of the new Chinese artificial intelligence (AI) tool, DeepSeek-R1, is one such moment.
Despite Washington’s efforts to restrict Beijing’s development of AI, including an export ban on advanced microchips, researchers in China have created an AI tool that not only exceeds the performance of American AI models like OpenAI’s ChatGPT, but does so at a fraction of the cost. If we are to believe the hype, it took just $6 million (£5 million) to build DeekSeep-R1, compared to more than $100 million (£80 million) for ChatGPT. This is the equivalent of building the fastest Formula 1 car for the price of a Ford Fiesta, all while being denied access to the best parts.
The impact of DeepSeek-R1 has been immediate and severe.
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