The competition in artificial intelligence (AI) development between the United States and China is heating up, especially with the emergence of DeepSeek, an AI model from China that has captured global attention. Praised for its smart, accurate, and superior processing speed, DeepSeek is not only a formidable competitor but also raises concerns in the U.S. tech industry.
DeepSeek’s Breakthrough
DeepSeek quickly rose to prominence by offering efficient AI solutions on low-performance chips at a cost-effective price. According to the company, it takes just around $5.6 million to build and maintain their system, a fraction of the hundreds of millions or even billions that U.S. tech giants invest in AI.
The rise of DeepSeek shakes the tech industry
DeepSeek’s rise is forcing the U.S. tech industry to rethink its AI development strategies.
This has raised questions among investors about whether U.S. companies are overspending in the AI race. As a result, a sell-off of U.S. tech company stocks occurred after DeepSeek made waves globally.
Mark Zuckerberg’s Response
In response to investor concerns, Mark Zuckerberg, founder of Meta (parent company of Facebook), addressed DeepSeek for the first time during Meta’s Q4 2024 earnings call. He reassured that Meta does not feel threatened by the rise of DeepSeek.
“It seems like everyone is panicking over DeepSeek. However, Meta remains confident in our strong investment strategy in AI infrastructure,” Zuckerberg emphasized. He explained that achieving high performance in data processing and intelligent feedback still requires extremely powerful computing capabilities.
Zuckerberg stated that Meta will continue to invest heavily in AI, planning to invest more than $60 billion next year to complete the Llama model. The company aims to reach 1 billion users for Llama 4, the latest version of this product line, by 2025.
Impressive Financial Results for Meta
Alongside the AI announcements, Meta also reported impressive financial results for Q4 2024. The company’s total revenue reached $48.39 billion, a 22% increase from the same period last year, with profits hitting $20.8 billion, up 43%. This growth largely came from strong advertising campaigns across Facebook, Instagram, and other platforms.
Mark Zuckerberg revealed that Meta now has over 3.35 billion daily active users on at least one of its platforms, including Facebook, Instagram, Messenger, WhatsApp, and Threads. This represents a 5% increase compared to the same period last year, underscoring the enduring appeal of Meta’s products.
Future Prospects
DeepSeek has demonstrated that AI can succeed without massive resources. This poses a significant challenge for U.S. companies to optimize costs and improve technology. However, with strong financial backing and long-term vision, Meta and other competitors remain confident in leading the AI race.
The competition between the U.S. and China in AI is expected to become increasingly intense, but the most important thing is to create truly useful solutions that serve the global community.
Sources:
Dantri.com.vn
