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28 January
How tech’s DeepSeek wakeup call could leave Nvidia stronger

Your Digital Self

Opinion:

DeepSeek shatters the myth that AI supremacy requires a billion-dollar checkbook

Nvidia CEO Jensen Huang speaks at CES in January. DeepSeek may give Nvidia an opportunity to expand its budding consumer AI market. Photo: AFP/Getty Images

Chinese startup DeepSeek has achieved what many (including experts) thought impossible: create a foundational, competitive AI model for just $5.6 million. By comparison, OpenAI’s unreleased GPT-5 (codenamed “Orion”) reportedly requires $500 million for six months of training.

While OpenAI often relies on supervised fine-tuning and massive computational resources, DeepSeek has pioneered a more efficient approach through pure reinforcement learning (RL), centered around the startup’s innovative GRPO (Group Reinforcement Policy Optimization) algorithm.

Jurica Dujmovic is a columnist for MarketWatch. He is a business publisher, consultant, designer and gamer. Follow him on Twitter @JuricaDujmovic.

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