China’s new AI lab DeepSeek releases new AI model which may outperform US products at less cost

Jeffrey A. Newman

AI lab in China, named DeepSeek has unveiled a new AI model which, according to initial reports can outperform Americaā€™s best AI models and is less expenses and has less-powerful chips. 

DeepSeek, has released its open-source large-language model in late December that itasserts ittook only two months and less than $6 million to build, using reduced-capability chips from Nvidia called H800s

In some third-party benchmark tests, DeepSeek says its model outperformed Meta’s Llama 3.1, OpenAIā€™s GPT-4o and Anthropicā€™s Claude Sonnet 3.5 in accuracy ranging from complex problem-solving to math and coding. 

DeepSeek on Monday released r1, a reasoning model that also outperformed OpenAIā€™s latest o1 in many of those third-party tests.

The lab and its founder, Liang WenFeng. DeepSeek was was born of a Chinese hedge fund called High-Flyer Quant that manages about $8 billion in assets.

Jeff Newman JD MBA, represents whistleblowers nationwide relating to customs and tariff fraud concerning imported Chinese goods as well as corporate whistleblowers in major claims under the False Claims Act (Qui Tam), and SEC, CFTC and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217