On January 20th, the Chinese artificial intelligence company DeepSeek made headlines across the global tech landscape when it unveiled its open-source model, DeepSeek-R1. This significant announcement has captivated the attention of venture capitalists and tech entrepreneurs alike, placing China firmly on the map in the realm of advanced AI technologies.

The excitement surrounding this release was amplified by the influential Silicon Valley figure Marc Andreessen, who coined the term "Sputnik Moment" to describe DeepSeek's breakthroughThis phrase references the pivotal moment in 1957 when the Soviet Union launched Sputnik 1, the first artificial satellite, which catalyzed a dramatic shift in the global space race and left the United States both shocked and scrambling to catch up.

One of the primary reasons for the buzz around DeepSeek's release is not just its technological innovation but also its implications for the future of artificial general intelligence (AGI). DeepSeek's R1 model represents a significant challenge to the dominance of Silicon Valley giants in the global AI landscape

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With a uniquely innovative architectural design and a high-performance, cost-effective technology pathway, DeepSeek appears poised to disrupt established market norms, impressing stakeholders both within China and beyond in places like Silicon Valley.

The competition in consumer-oriented AI models is expected to evolve into a "winner-takes-all" scenario; once a product captures consumer preference, it is likely to remain largely unchallengedConversely, in the B2B sector, where the diversity of applications and differing demands from various industries come into play, a flourishing marketplace is anticipatedThis variance allows for startups to develop unique applications tailored to specific needs and use cases.

Originating from the competitive global AI landscape, DeepSeek distinguishes itself with groundbreaking innovationsIn light of American export controls on Chinese tech companies, DeepSeek has innovated traditional computing and data requirements, diminishing the reliance on high-performance hardware

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This substantially lowers costs and enhances the performance and application efficiency of its models, thus garnering significant attention in the global tech community and prompting a reevaluation of the role of Chinese tech enterprises.

The uniqueness of DeepSeek's innovation lies primarily in its distinctive technical architectureMany AI models depend heavily on vast amounts of data and substantial computing power for trainingIn contrast, DeepSeek introduces a novel Multilayer Attention (MLA) mechanism, enabling efficient training and inference processes in low-power environmentsThis advancement allows DeepSeek's AI models to not only align closely with similar products from tech behemoths such as OpenAI and Google in terms of performance but also to drastically reduce costs, positioning itself as one of the most cost-effective solutions in the global AI industry.

In the eyes of international tech circles and investors, DeepSeek’s technical approach has been a refreshing surprise

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Their enthusiastic discussions are partly fueled by the fact that DeepSeek hails from China—differentiating it from many of its peers who are often seen as mere followers in technological pursuitsInstead, DeepSeek demonstrates that Chinese tech firms can possess significant independent research and development capabilities along with genuine technological innovation.

"I won’t just view DeepSeek as a Chinese company," said an observer, highlighting the competitive nature of the global AI landscape as firms strive to outpace one another with novel technological solutionsBy optimizing computational procedures and lowering operational costs, DeepSeek exemplifies how effective teams can emerge from anywhere, reinforcing the idea that remarkable innovation can single out a company irrespective of its geographic origins.

The launch of DeepSeek-R1 has also spurred profound reflections on the relationship between capital and innovation

Typically in Silicon Valley, technology firms rely heavily on extensive funding to drive technological advancementsIn contrast, DeepSeek serves as a beacon of potential, showcasing that revolutionary technological achievements can be realized through the organization of top-tier talent and optimized engineering design.

As the global competition among AI enterprises intensifies, resource constraints have emerged as catalysts for innovative thinking within startups like DeepSeekIn light of this, former Intel CEO Pat Gelsinger aptly noted, "Engineering is about constraintsThe engineers in China have limited resources and must seek creative solutions." This philosophy underpins DeepSeek's approach, as it optimizes computing processes and hardware requirements, paving the way for advance AI technologies.

Specifically, this Chinese startup has shown how to harness various technologies to develop new models using publicly available models and chips compliant with U.S

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export control regulationsSuch innovative design not only addresses the resource challenges faced by Chinese AI companies but also provides fresh development perspectives for the global AI sector.

The pursuit of excellence in large model performance by Chinese developers and researchers stands out as the key reason behind the exceptional capabilities of DeepSeek-R1. In other words, the driving force behind the progression of global AI development—including advancements in large language models—largely comprises the talents of researchers and developers.

As AGI technology progresses, entrepreneurial opportunities at the application layer are poised to expand continuouslyDeepSeek's founder, Liang Wenfeng, is resolute in focusing on research and explorationIn an interview with 36Kr, he analyzed, "In the long run, the entry barriers for large model applications will continue to diminish, thus startups could find opportunities to innovate at any point over the next twenty years."

This perspective ignites a flicker of hope for aspiring AGI entrepreneurs and forecasts that AGI technology will migrate from theoretical realms to practical applications, perhaps reshaping global industry standards

Jared Spataro from Microsoft expressed a similar sentiment, asserting that AI's value will eventually transition to the application layerAs these technologies evolve further, organizations will concentrate on leveraging AI to solve real-world business problems, making clear the worth of translating innovative technology into actionable outcomes.

"The ultimate value of large models will diminish to zero, meaning that while large models themselves create substantial value, they cannot capture it," contended Wang JinlinHe compared the value capture mechanisms of closed-source models and open-source models, asserting that while the residual value of the former may wane over time, the latter can sustain the creation and capture of value through openness and collaboration at the application level.

Wang emphasized that the competition in AI is not simply about the models per se; it extends to the applications layer, including tool-based applications