DeepSeek Sparks Optimism Among Canadian AI Leaders

By Tara Deschamps, The Canadian Press

TORONTO — Canada’s leaders in artificial intelligence are viewing the recent launch of DeepSeek, a Chinese AI startup's chatbot, with a sense of optimism. Despite the launch causing a drop in tech stock prices, these experts believe that the game for AI companies is far from over.

DeepSeek's AI assistant is being touted as a significant competitor, claiming to match or even surpass the capabilities of OpenAI’s ChatGPT while operating at a cost that is 95 percent lower. Canadian stakeholders in the tech industry believe that this development indicates there is still vast potential for innovation within their sector. Julien Billot, CEO of Scale AI, a consortium focused on AI development, stated, "The game is not over."

While many U.S. AI companies have made significant early strides and invested substantial sums into the technology, Billot notes that the success of DeepSeek illustrates that groundbreaking advancements can still emerge from elsewhere. Just last week, firms like OpenAI, SoftBank, and Oracle committed to investing up to USD 500 billion in a new AI infrastructure project called Stargate in the U.S.

According to Billot, DeepSeek's progress in a landscape dominated by heavy funding shows that innovation is not solely driven by financial resources. "Clever people can do something different with less money, and that’s something Canada can take inspiration from,” he added.

DeepSeek claims its AI assistant was developed in just two months at a cost of roughly USD 6 million, utilizing Nvidia’s H800 semiconductors, which are not as powerful as the chips needed for other AI models. Sébastien Paquet, vice-president of machine learning at Coveo, a Quebec City-based AI search company, referred to this as a significant advancement in resource requirements for high-performance AI models.

He views DeepSeek as a catalyst for both lowering the barriers to entry in AI and fostering greater competition, primarily because it is open-source, making it available for public use and development. Paquet remarked, "They’ve shown that we can actually have models that cost less to build, so we might get more of them in the future."

Billot expressed hope that Canada’s rich history in AI and the presence of valuable resources could position Canadian firms to disrupt the industry next. He cited promising companies such as Cohere, which is based in Toronto and focuses on enterprise AI solutions.

Aidan Gomez, co-founder and CEO of Cohere, emphasized that the future of AI rests on efficiency rather than unlimited resources, stating, "It’s not about unlimited resources but about smart, efficient solutions." He acknowledged that this realization is finally resonating throughout the industry.

Marc Low, KPMG’s director of innovation and emerging technology in Canada, echoed these sentiments, suggesting that the emergence of DeepSeek could provide excellent opportunities for Canadian businesses, as the technology becomes less costly and more accessible.

Low predicted that DeepSeek would accelerate a trend towards lower costs in generative AI, making it more approachable for a wider range of users. He pointed out that using DeepSeek’s AI assistant could cost just pennies per query.

However, Paquet cautioned businesses to be prudent before adopting DeepSeek, which has quickly risen to the top of Apple’s most popular free apps in Canada. He raised concerns regarding DeepSeek’s privacy policy, noting that it allows the collection of extensive personal data, including names, email addresses, and various usage patterns.

Paquet urged users to refrain from entering sensitive information and suggested using the assistant only for non-confidential queries, such as asking for song suggestions. "I wouldn’t use it with sensitive data at all," he advised.

This report was initially published on January 28, 2025.

AI, Innovation, Technology