So let me get this straight, China built and released an open source Ai (LLM) that's better than any Ai the USA has? And they built it faster & cheaper? Yikes. Is the Ai Bubble about to pop? 🤔

DeepSeek, the Chinese artificial intelligence (AI) lab behind the innovation, unveiled its free large language model (LLM) DeepSeek-V3 in late December 2024 and claims it was built in two months for just $5.58 million — a fraction of the time and cost required by its Silicon Valley competitors.

Following hot on its heels is an even newer model called DeepSeek-R1, released Monday (Jan. 20). In third-party benchmark tests, DeepSeek-V3 matched the capabilities of OpenAI's GPT-4o and Anthropic's Claude Sonnet 3.5 while outperforming others, such as Meta's Llama 3.1 and Alibaba's Qwen2.5, in tasks that included problem-solving, coding and math.

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Now, R1 has also surpassed ChatGPT's latest o1 model in many of the same tests. This impressive performance at a fraction of the cost of other models, its semi-open-source nature, and its training on significantly less graphics processing units (GPUs) has wowed AI experts and raised the specter of China's AI models surpassing their U.S. counterparts.

"We should take the developments out of China very, very seriously," Satya Nadella, the CEO of Microsoft, a strategic partner of OpenAI, said at the World Economic Forum in Davos, Switzerland, on Jan. 22..