Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Top News
Top News

Deepseek's Cost-Efficient AI Disrupts Energy-Hungry Data Centers

This photo shows a Meta data center, in Dublin, Ireland, Oct. 16, 2024. (AP Photo/Bram Janssen, File)

DeepSeek, a Chinese artificial intelligence startup, has made waves in the tech industry by claiming to have developed a highly popular chatbot at a fraction of the cost compared to American tech titans. This revelation has raised questions about the massive investments made by U.S. companies in energy-intensive data centers to advance artificial intelligence.

The potential implications of DeepSeek's cost-efficient AI technology on energy consumption and climate change are significant. The energy demands of AI, largely fueled by fossil fuels, have been a growing concern. However, DeepSeek's breakthrough suggests that AI development may not require as much electricity as previously thought, offering a more environmentally friendly approach.

DeepSeek's chatbot has quickly gained popularity, becoming the top downloaded free app on Apple's iPhone, surpassing well-known U.S.-made chatbots. The startup's AI model, R1, boasts impressive capabilities such as coding, problem-solving, and providing detailed explanations for its responses.

Analysts have been intrigued by DeepSeek's claim that training its flagship v3 model cost only $5.6 million, a fraction of the billions typically spent by other companies. Despite some limitations, such as using lower-performing AI chips due to export controls, DeepSeek's cost-effective approach has garnered attention.

The escalating energy consumption of data centers in the U.S. has raised concerns, with projections indicating a significant increase by 2028. Major tech companies like Meta Platforms and Microsoft are investing billions in data center infrastructure to support AI development.

Experts believe that more efficient AI technologies may lead to increased usage, potentially driving up energy demands. However, innovations like DeepSeek's chatbot could pave the way for more sustainable AI practices, reducing the reliance on energy-intensive data centers.

While the impact of DeepSeek's breakthrough on the AI industry remains to be seen, it has sparked discussions about the future of AI development and its environmental implications. As the industry evolves, balancing technological advancements with environmental sustainability will be crucial.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.