By Michael Mislos and Nath Cajuday
A surprise open-source AI model from Chinese firm DeepSeek rattled global tech and crypto markets over the weekend, challenging the long-held belief that advanced AI requires massive funding and cutting-edge hardware.
What’s the significance: Three things, namely:
- DeepSeek said in its whitepaper that it only had a $6M budget and access to older Nvidia chips. This is being contrasted to OpenAi’s $6.6 billion in funding.
- The bottomline: There is no need for steep capital demand.
- Its free, MIT-licensed models can let developers integrate AI cheaply.
- This will threaten market leaders like ChatGPT, which has a steep cost.
- Blockchain-based AI tokens slumped as investors weighed democratized AI’s impact on Web3 projects.
Key quote:
“The idea that AI requires hundreds of billions in hardware is being turned upside down. DeepSeek’s approach could redefine the entire ecosystem.”
Luis Buenaventura, CryptoPH Thought Leader and GCash Executive
AI Token Market Crash
What is DeepSeek Disrupting?
- Its flagship DeepSeek-R1 claims “robust reasoning” via multi-stage training, while the Zero variant uses large-scale reinforcement learning.
- The hardware is built with older chips amid U.S. trade embargoes, proving cost > cutting-edge gear.
Community reactions:
All cited comments from Luis Buenaventura’s Facebook post:
- “DeepSeek wasn’t accurate when I tried it,” said Aaron Satoshi (ICP Hub Singapore).
- “Shows promise—Gemini doesn’t come close,” noted Prof. Joben Ilagan (Ateneo de Manila).
- “I waited for open-source before investing,” admitted Jayvee Fernandez (Masayato Games).
What’s next:
- Crypto AI projects may face pressure to justify valuations as low-cost alternatives emerge.
- DeepSeek’s launch also signals aggressive AI ambitions with geopolitical ripple effects particularly between China and the US.
This article is published on BitPinas: What is DeepSeek: AI and Crypto Market Plunge as Chinese Startup Disrupts Industry
What else is happening in Crypto Philippines and beyond?
