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Also inside, industry weighs in on DeepSeek launch, semiconductor startup raises $36M for AI, IoT innovation and more
Here are the most-read stories on AI Business this week.
OpenAI has launched ChatGPT Gov, a version of its generative AI chatbot ChatGPT tailored for use by U.S. government agencies.
The ChatGPT Gov release comes amid rising AI competition. Chinese startup DeepSeek this week launched its flagship model, DeepSeek-R1, to a positive response among users, but crashing some U.S. technology stocks.
Announcing ChatGPT Gov in a blog post, OpenAI said it enables agencies to access OpenAI's advanced AI models, hosted either on their own Azure cloud or Azure Government cloud. This approach prioritizes security and compliance, meeting stringent government requirements.
The platform offers similar ChatGPT Enterprise, including GPT-4o access, saving and sharing conversations within a government workspace, uploading text and image files, custom GPT creation and administrative controls.
Chinese startup DeepSeek has launched an AI model that’s shaking up the tech market and is set to compete with OpenAI
Several technology company stocks were impacted by a new app from China. Nvidia shares fell more than 13%, while Microsoft and Meta shares also tumbled as DeepSeek became the number one downloaded app on the App Store.
DeepSeek’s two new first-generation reasoning models, DeepSeek-R1-Zero and DeepSeek-R1, are trained using large scale reinforcement learning (RL) without the need for supervised fine-tuning. The company said its R1 performance is comparable to OpenAI’s GPT-01 across a range of tasks including math, code and reasoning.
DeepSeek has open-sourced these two models, as well as six others the company has.
Chinese startup DeepSeek launched an AI model on Jan. 20, which proved instantly popular and caused a technology stock market upset.
The company’s flagship model, DeepSeek-R1, has garnered attention for its advanced reasoning capabilities in complex areas such as mathematics and coding, positioning it as a competitor to OpenAI's ChatGPT.
It quickly surpassed ChatGPT as the top free app in the Apple App Store and is reported as delivering results comparable to ChatGPT but at significantly lower costs as it is built to be resource-efficient, using far fewer chips during training.
The launch triggered a major stock market shock, sinking Nvidia, Microsoft and Meta share prices. Nvidia, whose H800 chips DeepSeek uses, had its shares plunge 17%, losing the company a record $589 billion in market capitalization Monday.
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Semiconductor technology startup Baya Systems has raised more than $36 million in a series B funding round led by Maverick Silicon and including Synopsys and existing investors Matrix Partners and Intel Capital.
Baya Systems, which is focused on accelerating intelligent computing for AI, IoT and other applications, said the financing will support development and deployment of the company’s software-driven system IP technology portfolio for system-on-chips (SoC).
The company expects to tap into a growing trend driven by AI and IoT whereby system on chips functions are no longer miniaturized on a single chip but rather there is a "system-of-chips" working together to enable performance to scale while optimizing power and cost.
Such chiplets could offer scalable performance, optimized power and reduced costs, the company said. This would support increasing AI capabilities, more efficient data movement and increased compute density, without relying solely on single chips, for which innovation is proving elusive with increasing costs.
DeepSeek made headlines Monday, disrupting the tech market, but it wasn't long before the company was reporting outages and working to secure its services after being hit by a cyberattack.
“Due to large-scale malicious attacks on DeepSeek's services, we are temporarily limiting registrations to ensure continued service,” the company posted on its website late Monday night. “Existing users can log in as usual. Thanks for your understanding and support.”
That wasn’t the only issue the Chinese startup AI company faced in the past 24 hours. On Monday, users also experienced login problems and new users were not able to sign up for the service.
By Tuesday morning, DeepSeek said it identified the issue, implemented a fix and was monitoring results for any further issues. However, the company’s website noted there is still an ongoing issue of the website and app running slower than usual.
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