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Explainer-What is DeepSeek and why is it disrupting the AI sector?

The Chinese startup's models are reportedly on par with OpenAI and Meta's most advanced models, while also being cheaper to use.

Deepseek logo and the Chinese flag are seen in this illustration taken January 27, 2025. / REUTERS/Dado Ruvic/Illustration

Chinese startup DeepSeek's launch of its latest AI models, which it says are on a par or better than industry-leading models in the United States at a fraction of the cost, is threatening to upset the technology world order.

The company has attracted attention in global AI circles after writing in a paper last month that the training of DeepSeek-V3 required less than $6 million worth of computing power from Nvidia H800 chips.

DeepSeek's AI Assistant, powered by DeepSeek-V3, has overtaken rival ChatGPT to become the top-rated free application available on Apple's App Store in the United States.

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