DeepSeek Sparks AI Price War: Europe’s Startups Gain Edge

From ChatGPT to Cost-Cutter: How a Chinese AI Model Is Reshaping Tech

Move over, OpenAI—there’s a new player turbocharging Europe’s AI scene! Chinese firm DeepSeek is winning over startups like Germany’s Novo AI with its ultra-affordable chatbots, slashing costs by up to 40x compared to rivals. ‘Switching took minutes,’ says Novo CEO Hemanth Mandapati, who’s now saving big while users ‘don’t see any difference.’

Leveling the Playing Field

With U.S. giants hogging 86% of 2024’s AI investments ($100B vs. Europe’s $15.8B), DeepSeek’s budget-friendly models are proving game-changing. Analysts say its $0.014-per-million-token rate—nearly 5x cheaper than OpenAI—is letting underfunded European firms like Denmark’s Empatik AI punch above their weight. ‘No huge budgets needed now,’ beams CEO Ulrik R-T.

The Ripple Effect

The shakeup’s already sparking drama: Microsoft just made OpenAI’s premium model free for Copilot users. But with DeepSeek training its top-rated AI for under $6M (vs. rivals’ $100M+ costs), Axelera AI’s Fabrizio Del Maffeo says it’s ‘a wake-up call that bigger isn’t always better.’ Meanwhile, the model just dethroned ChatGPT as Apple’s #1 productivity app.

Could this be Europe’s ticket to closing the AI gap? One thing’s clear—the chatbot wars just got spicy.

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DeepSeek helps Europe's tech firms catch up in global AI race

cgtn.com