What does open source AI mean, and why is DeepSeek different?

• DeepSeek has shaken up the AI ​​industry, surpassing ChatGPT to become the most downloaded free app in the U.S. Apple App Store.
• What makes DeepSeek a key differentiator is that the Chinese app is open source, meaning anyone can copy, download and build on it.
• The World Economic Forum’s AI for Industry Transformation initiative is exploring the challenges and opportunities of AI-driven innovation.

The United States remains the main source of AI models.

Image source: Stanford University

Lower cost, higher energy efficiency

Another key difference between DeepSeek and other AI models is the cost of building it. Data shows that it cost $5.6 million to build, which is only 10% of the cost of Meta's Llama model. This makes people question whether the huge financing needs of the AI ​​market (especially the US market) are as necessary as people initially thought. As a result, the stock price of Nvidia, which designs AI semiconductor technology, fell sharply in late January.

If AI models can be built in a shorter time and with lower energy consumption, it would be good news for the environment: the high electricity consumption associated with AI is significantly increasing carbon emissions. DeepSeek's approach could provide a more sustainable path for scaling AI.

The United States has invested more in artificial intelligence than the European Union and China.

Image source: Stanford University

How is open source AI changing the market?

As of the end of January 2025, DeepSeek has surpassed ChatGPT to become the most downloaded free app in the Apple App Store in the U.S. Many believe that its rapid rise could be an important step in the democratization of artificial intelligence, enabling small companies, startups, and individual developers to build on DeepSeek-R1.

Some argue that a more egalitarian AI-for-all approach could accelerate innovation in areas where access to cutting-edge technology is difficult and drive technological progress more broadly. Rather than focusing on building specialized models, developers could use their resources to create specialized applications, thereby unleashing the power of AI to solve real-world problems.

This goal is also supported by the World Economic Forum’s Industry AI Transformation initiative, which is exploring the challenges and opportunities presented by AI-driven innovation and has explored the transformative potential of AI across industries in a newly released white paper.

Many in the tech community believe that DeepSeek’s open source nature will help foster a collaborative environment and accelerate AI innovation, while others believe that open source models may be more trustworthy because people can query the training data.

In fact, many leading models have led to legal action against their companies due to the lack of transparency in their training data.

However, DeepSeek has also been criticized for alleged censorship issues in its answers and training data. Some governments have also banned the use of DeepSeek on the grounds of privacy issues. Ensuring transparent data processing, robust security measures and minimal review is key to building trust and maximizing technology acceptance.

The number of AI-related regulations in the United States is rising rapidly.

Image source: Stanford University

On the other hand, some believe that open source AI poses huge risks as it could be used for malicious purposes, such as developing biological weapons and facilitating the spread of misinformation and disinformation.

But in any case, the emergence of DeepSeek has made the artificial intelligence industry rethink its competitiveness. Its low-cost open source approach has overturned traditional concepts and prompted countries to reflect on the true path to success in the era of artificial intelligence.

While DeepSeek’s open source framework promotes inclusivity and transparency, it also raises important questions about data privacy, geopolitical dynamics, and security. As the technology continues to develop, how these challenges are addressed will be key to unlocking its full potential and ensuring it is used responsibly.

Charlotte Edmond

Senior Writer, Forum Agenda