Investing.com– Meta Platforms Inc (NASDAQ:) is on high alert as DeepSeek, a conversational AI developed by a Chinese hedge fund, challenges its dominance in artificial intelligence, The Information reported on Sunday citing two Meta employees familiar with internal discussions.
Meta’s AI leaders, including infrastructure director Mathew Oldham, have expressed concerns that the upcoming version of Meta’s Llama AI may fall short compared to DeepSeek’s groundbreaking performance, the report stated.
DeepSeek has quickly gained attention for outperforming established AI systems like OpenAI’s GPT models and Meta’s Llama, while operating at a fraction of their costs.
Its development raises significant capital expenditure (capex) questions for AI companies investing heavily in expensive infrastructure to support their models.
Meta, like its competitors, has spent billions on AI advancements, including scaling computational…