Earlier this week, Openai reignited its talk about Deepseek after releasing a pair of AI models.
These were the first free open versions (meaning they can be downloaded and modified) released by the American AI giant five years later, long before being led into the age of consumer AI.
“Deepseek allows you to draw a straight line to what Openai announced this week,” said D-Matrix's Sheth.
“Deepseek proved that smaller, more efficient models can still deliver impressive performance. That's what changed the way the industry thinks,” Sheth told the BBC. “What we're looking at now is the next wave of that mindset: the shift to the right-sized model is faster, cheaper and ready to roll out on scale.”
But for others, for the major AI American players, the old approach appears to be alive and well.
Just a few days after releasing the free model, Openai unveiled the GPT-5. At the landing, the company said, External We have significantly increased our computing capacity and AI infrastructure.
Numerous announcements about new data center clusters needed for AI come as American tech companies compete for the talent of top AI.
Meta CEO Mark Zuckerberg has ploughed billions of dollars to meet AI ambitions and tried to lure staff from his rivals with a $100 million wage package.
The fate of the tech giant seemed more connected than ever to its commitment to AI spending, as evidenced by the series of blowouts revealed by this past tech revenue season.
Meanwhile, Nvidia's stock, which plunged into the shortly after Deepseek's arrival, touched on a new high that has become the world's most valuable company in history.
“The first story proved a bit of a red herring,” said Khan of Mill Pond Research.
We are back to a future where AI is superficially dependent on more data centers, more chips, and more power.
In other words, the current state of Deepseek has not continued.
And what about Deepseek itself?
“Deepshek is currently facing challenges to maintain momentum,” said Marina Chang, an associate professor at Sydney Institute of Technology.
This is not only due in part to an operational setback, but also to fierce competition between the US and Chinese companies, she said.
Zhang says the company's next product, the Deepseek-R2, is reportedly delayed. One reason? A shortage of high-end chips.
