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The Chinese phenomenon DeepSeek is not only making American artificial intelligence (AI) players tremble. In France, too, the tech sector is in turmoil over the start-up's prowess. Because its implications are numerous.
Access to AI made more affordable
DeepSeek has made a big splash. While its application has crept into the top of free downloads on iPhones in the United States, its model achieves similar performance to OpenAI's most advanced technology. With one difference: the young Chinese company has achieved this by using much less powerful chips than its American rival, and at a much more affordable cost.
As a result, several major semiconductor manufacturers have collapsed on the stock market, with a historic fall of NVIDIA, but also of Broadcom and AMD. Microsoft and Google have also seen their shares plummet. French Tech is also captivated by DeepSeek, because it literally changes the game for French startups.
The ridiculous training costs spent by the Chinese company make AI much more accessible, where previously massive investments were required. These high prices are also one of the most significant obstacles to the adoption of the technology among small and medium-sized enterprises.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000The open source dimension of DeepSeek's models is also beneficial to French Tech: French start-ups have the possibility of using, modifying and building on the code for free. Similarly, its APIs are significantly cheaper than those of American startups.
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Points to clarify
Some doubts remain, however. By using DeepSeek's models, there is a risk that its data will be transmitted to China, where its management is very opaque. Similarly, its AIs are subject to the very strict regulations in place in the Middle Kingdom; for example, they refuse to provide answers to subjects deemed sensitive in the country, such as Tibet or Taiwan. As it stands, it is difficult to know whether the startup's technology complies with the AI Act. The legislation will come into full force in 2026.
DeepSeek's breakthrough comes at a pivotal time for the AI sector, as American giants are increasing colossal investments to expand their infrastructures. It proves that Chinese players are indeed there despite the heavy sanctions against them; Moreover, the country's technological giants are also developing large language models.
The Americans, for their part, congratulate DeepSeek, while promising to do better. The technological war is only just beginning.
- DeepSeek's success also has implications for French Tech.
- AI accessibility costs could melt away, while the majority of models used today are developed by American giants.
- Doubts still remain regarding the data sent to China and the censorship present on DeepSeek models.
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