China’s new DeepSeek Large Language Model (LLM) has disrupted the US-dominated market, offering a relatively high-performance chatbot model at significantly lower cost.
The reduced cost of development and lower subscription prices compared with US AI tools contributed to American chip maker Nvidia losing US$600 billion (£480 billion) in market value over one day. Nvidia makes the computer chips used to train the majority of LLMs, the underlying technology used in ChatGPT and other AI chatbots. DeepSeek uses cheaper Nvidia H800 chips over the more expensive state-of-the-art versions.
