DeepSeek creates chaos across the world, can India gain from AI rivalry between US and China?

DeepSeek’s R1 model has been praised for delivering AI-powered solutions at a fraction of the cost of its Western counterparts. It’s paid version is cheaper than ChatGPT and other AI models.

Jan 30, 2025 - 19:30
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DeepSeek creates chaos across the world, can India gain from AI rivalry between US and China?

A Chinese language startup, DeepSeek, has sparked discussions available within the market with its low-price AI mannequin. Its start has despatched tremors through the Artificial Intelligence (AI) alternate and induced a world debate on whether or now now not countries luxuriate in India are in a position to growing a rival to ChatGPT or DeepSeek. Notably, OpenAI CEO Sam Altman has moreover praised the AI. This has additional fueled online debates on whether or now now not India is ready to compete in this all of sudden evolving field. Nonetheless, the nation faces challenges equivalent to structural factors in training, funding constraints, and a low-threat investment custom, regardless of making technological strides

Why Is DeepSeek Gaining Recognition?

DeepSeek’s R1 mannequin has been praised for handing over AI-powered solutions at a a part of the associated price of its Western counterparts. It’s paid version is more cost-effective than ChatGPT and other AI models.

Utilising Nvidia’s low-ability H800 chips, DeepSeek is developed below USD6 million—which is majorly lower than the heavy investments required by other main AI gamers.

This methodology now now not handiest challenges the dominance of alternative AI companies nonetheless moreover highlights the functionality for innovation with out reliance on cutting-edge hardware.

Nvidia Shares Steal a Hit

Notably, the announcement of DeepSeek’s mannequin induced a promote-off in world tech shares, wiping out billions in market valuation. Nvidia witnessed a 17 p.c descend in its inventory tag, main to a USD593 billion decline in market price. This shows the volatile nature of the AI alternate and the market’s sensitivity.

Can India Compete with DeepSeek?

Naturally, DeepSeek’s rise has sparked hypothesis on whether or now now not India start a rival AI. Opinions are divided—some remain optimistic about the potentialities, whereas others highlight systemic challenges that hinder innovation                                        ,

On one hand, experts argue that DeepSeek’s price-effective methodology to developed AI capabilities may encourage India.

Deepak Shenoy, founder and CEO of Capitalmind, the provide of such models opens doorways for India to create affordable AI capabilities by leveraging existing instruments and optimising hardware usage.

India’s Strengths

As per experts, growing a ChatGPT-luxuriate in mannequin from scratch is pointless when existing open-source models may be tailored for particular capabilities. Netizens argue that India’s power lies now now not in growing advise opponents nonetheless in building on what already exists.

DeepSeek’s achievements stem from its ability to spice up and vivid-tune open-source applied sciences, demonstrating that innovation can happen with out the need of growing foundational models from the bottom up. For India, this is in a position to indicate leveraging world progress whereas concentrating on AI capabilities designed to meet its particular requirements.

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