DeepSeek: ‘More and more’ cheap AI models will emerge as Chinese app disrupts markets

Australian users will “naturally gravitate” towards new Chinese chatbot DeepSeek, but the Government is alive to the potential the new tool could spark a TikTok-esque security debate.

Giant US chip maker Nvidia suffered an almost $1 trillion wipe off on the US stock exchange on Monday, local time — the biggest fall in history — and other tech companies were also dealt a blow, in response to the cheap Chinese open-source AI chat-bot.

The DeepSeek model appears similar to ChatGPT, and uses old, outdated microchips that require much less energy and space. DeepSeek claims to have only invested about $10 million, making it significantly cheaper to run than other open-AI models.

It marks a new frontier in the competition between Washington and Beijing, and was achieved despite the Biden Administration’s attempts to limit Chinese access to microchips and semiconductors capable of rapidly processing data.

Asked if he had concerns about Australian users of DeepSeek, Industry Minister Ed Husic said it was still early days.

“People will naturally gravitate towards (DeepSeek), but I think there will be parallels to what you’ve seen with the discussion around TikTok emerge around DeepSeek as well, and I wouldn’t be surprised if that emerges,” he said.

“But let’s wait and see how that plays out.

“The reality is, there is a race in the development of artificial intellgence. It’s been going on since the aftermath of the Second World War. It’s been in fits and starts, and we are seeing the latest chapter play out - this will be something that we have to get accustomed to.”

There has been a broad political debate about TikTok in Australia for years, culminating in the app being banned from government workers’ phones due to security concerns, linked to the app’s Chinese parent company ByteDance.

What has emerged in the new AI system’s infancy are concerns about censorship, with users reporting its failure to answer questions on the Tiananmen Square protests and public critiques of Chinese President Xi Jinping.

The app also insists Taiwan is an “inalienable part” of China, and that alleged human rights abuses in Xinjiang are “unfounded and politically motivated”.

Mr Husic said people’s “individual experiences” would guide them as to whether or not to use and stay with a product, but he reiterated that it was still early.

“Even ChatGPT in its early generations would acknowledge the quality wasn’t always meeting customer expectation, and they keep refining. They’re always looking to improve the way technology works, and I suspect that might be the case with anything else that follows afterwards,” he said.

“Consumers will vote with their feet ... And if anything presents a risk to the national interest, we will always keep an open mind but it’s too early to jump to conclusions just yet.”

Australia’s new chief scientist, professor Tom Haymet, said what the news about DeepSeek showed was how dynamic the AI market was - and the potential Australia had at its disposal to tap into this.

“I view AI as a great opportunity. I think it’s a great export opportunity for Australia, because AI needs electricity, and most of the world is demanding that we deliver AI with renewable electricity and Australia is perfectly set up for that,” he said.

He said Australia had a “terrific governance regime”, which would mean keeping Australians safer from “potential perils” of AI than many other countries.