On November 30, 2022, the world noticed one of the biggest technological advances of the era, the launch of ChatGPT. This AI chatbot developed by OpenAI has won the hearts of millions with its amazing responses. For a long time, ChatGPT remained a topic of discussion throughout the world.
Observing the rising popularity of this chatbot, Google and many other companies have announced launching their own AI chatbots. Initially launched as Google Bard, this chatbot from Google underwent a name change and became Google Gemini. While ChatGPT is still the favorite of millions of internet users, Google Gemini has also started gaining popularity among netizens.
The competition between AI chatbots has been further spiced up with the introduction of China’s latest chatbot DeepSeek. Launched by a small Chinese tech company, DeepSeek has impressed many AI enthusiasts. Some experts have opined that the tool has outperformed ChatGPT in some cases.
DeepSeek: The New Disruption in AI Market
Not just the advanced features of DeepSeek, the global AI giants are now rattled due to the fact that the Chinese AI chatbot has taken only a few months to be built by the developers. More interestingly, the cost of developing this tool is unimaginably lower than its competitors.
While the stocks of NVIDIA and Microsoft were soaring in the last few months, the Chinese chatbot has caused a big blow to the stocks of these companies. DeepSeek’s fast-gaining popularity sent a message to the big companies that the AI chatbot model will no longer be a one-sided thing. The competition is going to be tougher and more interesting in the coming days.
What Is DeepSeek?
Founded in 2023, DeepSeek is a Chinese artificial intelligence chatbot model. A company based in Hangzhou, in China’s Zhejiang province, has introduced this AI chatbot to the world. In the past, there were two versions of this AI platform. However, those versions remained in the experimental stage. The latest version, which happens to be the third version of the AI chatbot model, is available for public use.
It is not astonishing to see ChatGPT facing fierce competition in 2025. In the coming years, the competition will rise with the introduction of Anthropic’s Claude Sonnet 3.5 and Meta’s Llama 3.1. So, it is not surprising to see the competition between various chatbots. But, the fascinating thing is DeepSeek’s low-cost model. Besides a low-cost model, the overall time taken to develop this chatbot is also quite fascinating. The developers took only a few months to create this AI model, which happens to be a fierce competitor of ChatGPT.
The Cost of Developing DeepSeek
The overall cost of developing DeepSeek is now a topic of discussion between the developers and experts. According to the report, the Chinese developer has stated that it took them around $5.5 million USD to build this AI chatbot model. On the other hand, ChatGPT alone cost around $100 million, as reported by various agencies in 2023.
Therefore, the cost of DeepSeek is 20 times lower than the cost of developing ChatGPT. While the American tech giants are ready to investing billions in developing various AI models, the Chinese developers went against the tide and created a super-efficient AI chatbot at a much lower price.
Therefore, it is obvious that the prices of stocks of various AI giants have started falling. Investors who were basking on these tech giants may now think about investing in smaller firms that can create AI models at a much cheaper price. The time ahead will be interesting from two perspectives. Firstly, it would be interesting to watch how ChatGPT responds to DeepSeek. Secondly, it will be interesting to watch how investors will make their investment decisions on various companies that are presently working on the AI models.
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