China AI Hopeful DeepSeek Rocks Wall Street’s Magnificent Seven – AFR – 27 January 2025

The emergence of high-performance, low-cost AI from China, such as DeepSeek, is reshaping the competitive landscape, offering Australian organisations significant cost advantages and challenging the dominance of US-based providers.

Investors say the latest AI model released by China’s equivalent to OpenAI has the potential to disrupt the United States’ grip on generative AI technology.

Interview by Joanne Tran, Amelia McGuire and Paul Smith: AI and Risk with Joseph Sweeney

The generative AI market is no longer a one-horse race. The arrival of powerful and remarkably low-cost models from China, exemplified by DeepSeek, signals a seismic shift. For Australian developers and businesses, this introduces a compelling new choice, with some local developers already planning to swap out more expensive AI services for this cheaper alternative. This isn’t just about saving money; it’s about a fundamental change in the accessibility of cutting-edge AI.

It is crucial, however, to distinguish between using a model like DeepSeek as an API service versus deploying it as an open-source model. Accessing it as a service is a straightforward, pay-as-you-go affair, ideal for rapid development and integration. In contrast, using the open-source model offers greater control and customisation but demands significant in-house expertise to manage and maintain the infrastructure. The choice between the two will depend on an organisation’s technical maturity, resources, and strategic goals. What is clear is that the AI landscape is becoming more diverse, and for Australian organisations, that can only be a good thing.

Read the full story here.

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