DeepSeek achieved something spectacular in a matter of months while delivering a massive shock to the US stock market. The AI company released a wildly impressive ChatGPT rival called DeepSeek AI, and it went viral a few weeks ago. No other AI firm has achieved what DeepSeek did, not even Google.
The most impressive part was that, due to US sanctions, DeepSeek didn’t have access to the latest GPUs for AI development. So they came up with software tools to train an AI as well as OpenAI’s reasoning models at a fraction of the cost. This feat wiped $1 trillion from the US stock market, as investors were spooked that hardware would not continue to be the most important thing in AI development.
While those worries might have been exaggerated, DeepSeek isn’t stopping. The company plans to launch a big DeepSeek R2 reasoning model upgrade, and it’s rushing to have it out by May. China is still banned from accessing the latest chips, so DeepSeek R2 development will rely on whatever GPU stockpiles DeepSeek might have smuggled, as well as software optimizations.
But it’s not just software or hardware that DeepSeek might excel at when competing against OpenAI and other Western AI firms. A report detailing DeepSeek’s unconfirmed plans to release R2 by May also reveals the secret sauce that made the DeepSeek R1 breakthroughs possible. Apparently, the people working at DeepSeek love it there thanks to a company culture and business practices that are uncommon among big Chinese tech firms.
The post We finally know the secret sauce behind DeepSeek’s AI breakthroughs that shocked the world appeared first on BGR.
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We finally know the secret sauce behind DeepSeek’s AI breakthroughs that shocked the world originally appeared on BGR.com on Wed, 26 Feb 2025 at 09:04:00 EDT. Please see our terms for use of feeds.