DeepSeek Revives API Access: A Cost-Effective AI Solution for SMEs
Artificial intelligence startup DeepSeek has resumed allowing customers to access its AI platform API. This move comes after the company gained significant attention for its cost-effective AI solutions, challenging the notion that high innovation must com
AiDeepseekCosteffective AiGenerative AiTech IndustryReal EstateFeb 26, 2025
The Chinese company, which created a stir in the tech world last month with its AI platform, had suspended service earlier this month due to server capacity shortages.
DeepSeek will now allow customers to top up credits to be used on its API, as reported by Bloomberg on Tuesday (Feb.
25).
However, server resources will still be strained during the daytime, indicating a continued need for robust infrastructure to support its growing user base.
The company’s popularity soared in January when it released an AI model that it claimed could perform as well as OpenAI’s models but at a fraction of the cost.
This announcement sent shockwaves through the tech industry, leading to a drop in tech stocks and raising questions about the necessity of massive spending on AI projects.
“DeepSeek challenges the narrative that innovation must come at an unsustainable cost,” said Gokul Naidu, a consultant for SAP.
“For businesses, this means AI could soon be accessible to small and medium enterprises (SMEs), not just tech giants with deep pockets.”
However, not everyone is convinced by DeepSeek’s cost claims.
Demis Hassabis, Google’s AI chief, has pointed out that the company may have only reported the cost of its final training round, which represents only a fraction of the total development cost.
This critique highlights the ongoing debate about the true costs and benefits of AI innovation.
Andrew Wells, the chief data and AI officer for North America at NTT Data, has also weighed in on the issue.
In an interview posted this week, Wells discussed the challenges executives face in balancing rapid innovation with privacy concerns and regulatory scrutiny.
“It was that dichotomy … that was causing a lot of angst in a lot of the CEOs (and CIOs) that I talked to,” Wells said.
The rapid pace of AI development, particularly in the realm of generative AI (GenAI), has created a complex landscape where companies must navigate both technological and ethical considerations.
Wells further noted that generative AI is beginning to be commoditized, despite being a relatively new technology.
“I look at GenAI as the phase that we’re in now and starting to get commoditized,” he said.
“I think DeepSeek definitely shot the arrow across our bow to say that we can do this for a lot less and make models that have high efficacy.”
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Frequently Asked Questions
What is DeepSeek?
DeepSeek is a Chinese artificial intelligence startup that gained attention for its AI platform, which it claims can perform as well as models from leading companies like OpenAI but at a significantly lower cost.
Why did DeepSeek suspend its API service?
DeepSeek suspended its API service earlier this month due to server capacity shortages, but has since resumed access for customers who can top up credits for continued use.
What impact did DeepSeek's announcement have on the tech industry?
DeepSeek's announcement of a cost-effective AI model led to a drop in tech stocks and sparked a debate about the necessity of massive spending on AI projects, challenging the notion that high innovation must come at a high cost.
What are some concerns about DeepSeek's cost claims?
Some tech industry figures, including Google’s AI chief Demis Hassabis, have questioned DeepSeek’s cost claims, suggesting that the company may have only reported the cost of its final training round, which is a fraction of the total cost.
How does generative AI fit into the tech landscape?
Generative AI (GenAI) is a rapidly evolving technology that is beginning to be commoditized. It presents a unique challenge for executives who must balance rapid innovation with privacy concerns and regulatory scrutiny.
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