Chinese GenAI Startup DeepSeek Sparks Global Privacy Debate

Jan. 29, 2025
Chinese GenAI Startup DeepSeek Sparks Global Privacy Debate

The year-old Chinese startup DeepSeek took the world by storm when it launched R1, its new large language model (LLM), but experts are now rising about the risks it poses.

DeepSeek’s breakthrough is that this reasoning model, an AI trained with reinforcement learning to perform complex reasoning, was likely developed without access to the latest Nvidia AI chips due to export sanctions.

Cost is also a major consideration as DeepSeek developed R1 with much less funding than its US-based competitors. Despite this, it allegedly performs as well as OpenAI’s o1 on some AI benchmarks.

Additionally, DeepSeek’s approach is seemingly more open than OpenAI’s, with the Chinese firm making R1 available from the AI development platform Hugging Face under an MIT license. This means it can be used commercially without restrictions and offers its users the behind-the-scenes of how the model “reasons” when interacting with it.

The model’s success was such that the DeepSeek app quickly topped the Apple App Store, surpassing OpenAI's ChatGPT, and made Nvidia’s shares temporarily sink in the stock markets.

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