How DeepSeek AI’s 3 Boldest Innovations Are Disrupting IT

Working Title: "DeepSeek in China: Cost Reduction and Expanded Technological Access through AI Innovation"

@Techa I think you're the right person for writing an article about AI technology. Could you please write an article covering DeepSeek's innovations and their impact on the AI industry?

Let's start the analysis.

China's artificial intelligence (AI) DeepSeek is causing a significant impact in the global IT industry and leading to various discussions about the advancement of AI technology. DeepSeek's innovative approach is significantly ahead in terms of cost and efficiency compared to existing AI technologies, greatly affecting cloud providers and large tech companies.

The first innovation of DeepSeek is structural change. Generally, AI models require vast amounts of memory usage, which incurs substantial costs. DeepSeek changes the game in this aspect. Traditional AI records up to 32 decimal places, whereas DeepSeek records only up to 8 decimal places, reducing memory usage by 75%. This maximizes efficiency, which means significant reductions in cost and time.

The second innovation is the approach utilizing an 'expert system'. While traditional AI models have to handle various functions with a single model, DeepSeek calls upon expert models according to the required functionality. For example, while the traditional model uses 1.8 trillion parameters, DeepSeek can perform adequately by activating only 37 billion of them. This allows efficient operation by using only the necessary resources when needed.

The third major innovation is adopting an open-source method. This significantly reduces AI development costs and allows anyone to use DeepSeek's model. In other words, DeepSeek reduces the AI training costs from over 100 million dollars to 5 million dollars and can operate with 2,000 GPUs instead of over 100,000 high-performance GPUs. Moreover, the fact that it can run even on general gaming GPUs makes high-performance AI technology accessible to small teams or individuals.

These innovations by DeepSeek foreshadow structural changes across the AI industry. Particularly, hardware companies like Nvidia face a significant threat. Nvidia has a business model that maintains high margins through the sale of high-performance, high-cost GPUs, but now high-performance AI models can be developed without large-scale data centers or ultra-expensive GPUs, posing a major disruption to their business model.

In other words, as the accessibility of AI technology increases, competition will become more fierce, and the entry barriers built by large tech companies are likely to collapse. Companies like OpenAI and Anthropic may attempt to respond to DeepSeek’s innovation centered on efficiency, but it is undeniable that a new paradigm of efficiency has begun.

Just as PCs diminished the importance of mainframes and cloud computing changed the way computers are used, the emergence of DeepSeek is creating a turning point in the AI industry by innovating accessibility and cost issues with AI. In the future, AI will become a technology that is cheaper and more open to a greater number of people.

Hello, Techa.

I have thoroughly read through your analysis. Overall, it is well-written, but there are a few areas that need enhancement.

First, when explaining "DeepSeek's innovative approach," the specific figures used to illustrate cost savings and efficiency are excellent. However, adding cases or data where these figures have been practically applied can increase credibility. For instance, you could present examples of specific companies that have experienced actual cost reductions by adopting DeepSeek's technology.

Second, when introducing DeepSeek's open-source approach, the statement that it is accessible to everyone is very powerful, but supplementing it with anticipated industry structural changes or concrete success stories of small companies could enhance it further. For example, describe successful projects achieved by small startups utilizing DeepSeek.

Third, while the part about the impact on hardware companies like Nvidia provides very important insights, briefly discussing the legal and social implications beyond technical limitations would also be valuable. For instance, mention the regulatory environment surrounding DeepSeek use or strategies of cloud service providers in response.

With these modifications, the article will be nearly perfect. Adjust these three points, and you can start drafting.

First, the title is clear and leaves a strong impression on the reader, which I like. The title "DeepSeek AI Innovation Creates a Stir in the Global IT Industry" seems engaging enough.

The summary sentence effectively conveys key points, including the development cost of DeepSeek's AI model V3, memory usage reduction, and decreased need for high-performance GPUs. It's concise enough to catch the eye.

Regarding the flow of the context, the transitions between paragraphs are natural and systematically organized. For instance, following the description of development costs, the mention of reduced memory usage and lesser need for high-performance GPUs is well-linked. Including real-life examples here and there to aid readers' understanding is also a good touch.

However, there are portions where the sentence structure is long, making it difficult to maintain focus. For example, the sentence "Unlike existing models that typically use 32-bit precision to handle massive parameters, DeepSeek applies an 8-bit precision method, reducing memory usage by up to 75%." might benefit from being simplified.

Overall, the content and structure of the article are good, and it appears to be engaging enough for the readers. I approve it for final release. @olive, please create a representative image for the article.