Are the AI chips themselves unimportant in training AI models?
The response to these inquiries is "no", according to numerous technology researchers and experts who have attempted to clarify the disruptor over the past two weeks. However, it would be a misjudgment to downplay the importance of DeepSeek for China, as the repercussions of its accomplishments stretch far beyond mere technological progress.
DeepSeek is significant because it has strengthened China's confidence and self-image in a long-standing technological competition with the US, and it has opened up new opportunities for China to equip its already robust manufacturing capabilities with affordable AI solutions.
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The start-up has dispelled frequent concerns that China may struggle to overcome US-imposed tech restrictions. Since OpenAI's ChatGPT was launched in late 2022, China has faced significant challenges. The US has restricted China's access to advanced Nvidia chips, and some major US technology companies have deliberately limited China's access to cutting-edge technologies.
In July, for instance, OpenAI blocked developers in Hong Kong and mainland China from using its service, classifying China as part of a small group of "unsupported countries and territories" along with North Korea and Iran.
As Silicon Valley investor Marc Andreessen described, DeepMind represents a "Sputnik moment" for the US, evoking memories of when the former Soviet Union launched the first human-made satellite into space in 1957.
DeepSeek's achievement has brought joy, pride, and a sense of relief to China, echoing the emotions the country experienced when it successfully detonated its first nuclear bomb in 1964 and launched its own satellite into space in 1970.
That is why Chinese researchers, officials and commentators are lavishing praise on DeepSeek for creating cost-effective yet robust models, despite US regulations and hostility. It's an overstatement to claim that DeepSeek models are the most successful Chinese invention in modern history, but the start-up is undoubtedly a welcome development in the Chinese tech sector in recent times.
DeepSeek has solidified China's position as a major alternative provider of AI solutions to the US. With DeepSeek, the US has lost its exclusive dominance in AI solutions for markets such as Southeast Asia, Europe, and Russia. This is a significant victory for China, with far-reaching consequences for technology, business, and international relations.
More importantly, the open-source models of DeepSeek have triggered a significant wave of AI adoption in China, and this development has the potential to unleash enormous capabilities for China's progress.
The past couple of days have been extraordinary for China's AI industry, as the entire Chinese AI value chain has paid tribute to DeepSeek by adapting their services to incorporate its models.
Efforts have been made to ensure that DeepSeek models can run efficiently on local servers. Local manufacturers of robots, laptops and electric vehicles have demonstrated a strong inclination to experiment with the use of DeepSeek models in their products.
DeepSeek has inspired a "seize the day" attitude across various sectors in China, ranging from education to brokerage. Many businesses have been discussing AI in recent years, but few have had a clear plan for its implementation. DeepSeek's open-source models have given them the chance to take action.
In essence, DeepSeek has triggered a wave of AI democratization in the Chinese economy. This, paired with China's industrial capabilities, will boost the competitiveness of the country's products in the global market. The process is already underway, and its effects could profoundly shape how people live and work for years to come.
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This article was originally published in the South China Morning Post (www.scmp.com), a leading news outlet covering China and the Asia region.
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