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DeepSeek's AI Demonstrated Capabilities Unseen in Other Systems

The Chinese AI firm didn't outperform OpenAI by expanding its size or developing novel strategies.

DeepSeek's AI Demonstrated Capabilities Unseen in Other Systems

Over the weekend, Chinese AI company DeepSeek grabbed headlines after it surpassed OpenAI's ChatGPT on Apple's App Store downloads. This achievement came following the publication of DeepSeek's papers, where they declared their R1 models, surprisingly affordable, outperform OpenAI's best publicly available models. But what's DeepSeek's secret sauce that left OpenAI's deep pockets empty?

Both companies have their differences, with one clear advantage for DeepSeek - efficiency. While OpenAI is stuck on expensive hardware and data centers, DeepSeek ingeniously optimized its model architecture with cheaper, older Nvidia hardware. Karl Freund, the brainchild of Cambrian AI Research, states this is a consequence of US policies fromcing Chinese companies to innovate and optimize instead of simply purchasing top-tier hardware.

DeepSeek's papers might be a bit technical for laymen, but they highlight a committed team. Utilizing every tool at its disposal, it minimized computing memory and optimized its model architecture. OpenAI introduced reasoning models and chain-of-thought techniques for problem-solving, but DeepSeek had its own clever strategy.

DeepSeek ditched human feedback and instead, programmed its algorithm to recognize and correct its own errors, achieving what the company calls "self-verification, reflection" and long "chains-of-thought." It's the first open-source research to successfully employ pure reinforcement learning for this purpose.

However, the results weren't flawless. The model's output could be a tad awkward, with language switching issues. Therefore, DeepSeek devised a new training pipeline that integrates limited human-labeled data to steer the model, followed by several rounds of reinforced learning. The tweaked model, R1, proved superior over OpenAI's GPT-o1 in many math and coding challenge sets.

China's AI companies, like DeepSeek, closely follow Western developments and exploit US policies to their advantage, ensuring they can navigate chip embargoes and such. Georgetown's Bill Hannas and Huey-Meei Chang claim that DeepSeek's success serves as a wake-up call to US AI companies obsessed with gargantuan solutions: they advocate for an approach like "doing more with less," common in Chinese state-funded labs.

While DeepSeek doesn't invent these optimization techniques, it skillfully applies them to emerge as a cost-effective, commercially successful AI rival. It's a strategy that US labs might want to learn from.

  1. DeepSeek's achievement in surpassing OpenAI on Apple's App Store downloads can be largely attributed to its tech strategy, which notably includes the use of older Nvidia hardware for optimized model architecture, a decision driven in part by US policies.
  2. The future of AI technology seems to be shifting towards more cost-effective solutions, as demonstrated by DeepSeek's success in outperforming OpenAI's best publicly available models with its R1 models, which are surprisingly affordable.
  3. Despite OpenAI's introduction of reasoning models and chain-of-thought techniques, DeepSeek's own clever strategy of programming its algorithm for self-verification, reflection, and long chains-of-thought set it apart, resulting in the superior R1 model.
  4. The tech industry, particularly AI companies, would benefit from observing DeepSeek's approach, which has allowed it to compete effectively with giants like OpenAI without relying on top-tier hardware or vast resources.

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