The AI Cost Revolution: How a Small Company Disrupted the Industry’s Economics

A small Chinese AI company, DeepSeek, has disrupted the industry by developing a model that rivals OpenAI’s—at just 5% of the cost. Using efficient training (GRPO) and optimized inference, they’ve slashed AI costs by 90%, challenging tech giants. This could democratize AI, much like how Netflix, Amazon, and SpaceX reshaped their industries. A new AI era may be unfolding.