Europe Gains Momentum in AI with DeepSeek Breakthrough
News Desk
Islamabad: DeepSeek, a China-based AI company, has disrupted the industry by introducing a high-performance model that reportedly costs a fraction of the price of those created by major US companies. Experts are now suggesting that this breakthrough could present an investment opportunity for smaller European firms.
Neil Lawrence, a machine learning professor at the University of Cambridge, pointed out that DeepSeek’s large language model (LLM) is challenging the notion that building advanced artificial general intelligence (AGI) requires vast amounts of money.
He was referring to the recent announcement of the US’s $500 billion “Stargate” project to build AI infrastructure, spearheaded by OpenAI, creator of ChatGPT. The scale of the investment highlighted the significant resource gap between European companies and those at the cutting edge of AI development.
However, DeepSeek’s claim of developing a comparable model to OpenAI’s for just $5.6 million has shaken up these assumptions.
Their technology promises models that are more energy-efficient, require fewer GPUs, and come at a lower cost, according to Laurent Daudet, CEO of French generative AI company LightOn. Daudet emphasized that Europe doesn’t need to embark on a project as massive as Stargate to innovate successfully.
This revelation has caused a dip in AI-related tech stocks, including Nvidia, a major chipmaker. Nicolas Gaudemet, AI chief at consulting firm Onepoint, predicts that the increased competition will lead to lower prices, as new providers enter the market.
Professor Lawrence also lamented that DeepSeek didn’t emerge from Europe’s extensive AI talent pool. However, he was optimistic about the potential for more companies to follow DeepSeek’s lead. He praised their open-source approach, which allows others in the AI community to build upon their work, potentially benefiting European firms like France’s Mistral.
Gaudemet noted that these companies could leverage DeepSeek’s models to enhance their own developments. However, he also pointed out that Europe faces stiff competition not only from the US but also from China, which has shown it can develop competitive AI technologies.
Jonas Andrulis, CEO of German AI firm Aleph Alpha, stated that his company is already offering DeepSeek’s capabilities to clients. However, he stressed the need for meaningful innovation beyond just replicating existing models.
The rise of cheaper AI models could also lead to more tools tailored to local markets and specific business needs, rather than relying on highly centralized models. Daudet highlighted that European companies could focus on building secure, customizable AI solutions for businesses, emphasizing data privacy and control.
Gaudemet noted that Europe has an opportunity to differentiate itself by offering a neutral, secure alternative to the US and China’s dominance, appealing to countries that are uneasy about relying on either of these two global powers.
Lawrence concluded that Europe’s strengths lie in its robust research community and its bottom-up approach to innovation. He believes Europe doesn’t need massive investments to succeed but rather should focus on listening to its own people and responding to its local needs, rather than being swayed by trends set by companies like OpenAI.
