Investing.com — Meta Platforms Inc (NASDAQ:) is on high alert as DeepSeek, a conversational AI program developed by a Chinese hedge fund, challenges its dominance in the AI space, The Information reported Sunday, citing two employees. Meta insider internal discussions.
Meta's AI leaders, including infrastructure director Matthew Oldham, have expressed concerns that the upcoming release of Meta's Llama AI may underperform its flagship DeepSeek, the report said.
DeepSeek quickly gained attention for outperforming existing AI systems such as OpenAI's GPT models and Meta's Llama, while operating at a fraction of its costs.
Its development raises big questions about the capital spending of AI companies that invest heavily in expensive infrastructure to support their models.
Meta, like its competitors, has spent billions on AI advances, including scaling computational resources and improving model training. However, DeepSeek's ability to achieve similar or better results at lower costs has raised concerns about the sustainability of such huge investments.
Small companies aiming to compete in the AI space may face more challenges, as DeepSeek sets a new standard for cost-effective innovation.
The competition highlights the changing landscape of artificial intelligence development, where performance is no longer the only measure of success. Cost efficiency and accessibility are becoming increasingly critical, putting pressure on industry leaders like Meta, NVIDIA Corporation (NASDAQ:), Microsoft Corporation (NASDAQ:), Alphabet, Inc. (NASDAQ:) and other technology leaders.
