"There's substantial evidence that what DeepSeek did here is they distilled the knowledge out of OpenAI's models and I don’t think OpenAI is very happy about this,” said the U

David Sacks says OpenAI has evidence that Chinese company DeepSeek used a technique called "distillation" to build a rival model.

“This is all to say that, if OpenAl argues that it is legal for the company to train on whatever it wants for whatever reason it wants, then it stands to reason that it doesn’t have much of a leg to stand on when competitors use common strategies used in the world of machine learning to make their own models. But of course, it is going with the argument that it must ‘protect [its] IP.'” —SS

The announcement of DeepSeek's R1 model led to significant market reactions, with notable declines in tech stocks, including a substantial drop in Nvidia's valuation. This downturn was driven by concerns that more efficient AI models could reduce the demand for high-end hardware and, by extension, the expansive data centers that house them.

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The world of artificial intelligence is changing fast with DeepSeek. This new language model is taking on OpenAI’s top spot. It’s a big step forward in AI tech, giving developers and big companies a strong new choice.

But AI scientists have pushed back, arguing that many of those fears are exaggerated. They say that while DeepSeek does represent a genuine advancement in AI efficiency, it is not a massive technological breakthrough—and that the American AI industry still has key advantages over China’s.

DeepSeek-R1 is the groundbreaking reasoning model introduced by China-based DeepSeek AI Lab. This model sets a new benchmark in reasoning capabilities for open-source AI. As detailed in the accompanying research paper,

A stock market expert has given his verdict for where it is headed in 2025 after Wall Street erased $1 trillion in value on Monday over fears China is winning the AI arms race.

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SoftBank would lead the $40 billion round for the ChatGPT maker, some of which would go to the Stargate AI infrastructure venture.

Microsoft is making its AI-powered Copilot even smarter by bringing OpenAI’s o1 reasoning model to all users—for free. All details.