Many US tech firms are turning to China's DeepSeek as the bill for homegrown AI bites – American AI companies could learn a thing or two (www.techradar.com)

A growing number of U.S. tech companies are turning to China's DeepSeek, driven by concerns over high costs associated with homegrown AI models. DeepSeek, which has recently achieved a valuation of approximately $60 billion, offers significantly cheaper and lighter alternatives to U.S. models from firms like OpenAI and Anthropic, while still meeting the performance needs of businesses. This trend signals a broader shift within the AI market, as companies increasingly prioritize cost-effectiveness over cutting-edge performance. DeepSeek's appeal lies not only in its affordability but also in its open-source model, which allows users to download, customize, and deploy the technology on their own infrastructure, reducing reliance on external providers. By using more efficient training techniques and requiring fewer resources, DeepSeek has positioned itself strategically amid U.S. semiconductor export restrictions to China. The company recently secured $7.4 billion in funding, with expectations that its upcoming V4 model will further enhance cost efficiency, making it an attractive option for international customers seeking budget-friendly AI solutions.