What DeepSeek Means for GCCs

DeepSeek, a Chinese AI startup, has shaken up the tech world and has proved that building a high-quality AI model doesn’t have to cost hundreds of millions of dollars.  While companies like OpenAI invest over $100 million in developing AI models, DeepSeek has reportedly built a GPT-4-like model for just $5.6 million. This remarkable achievement is attributed to its efficient design, innovative training methods, and strategic resource management. So far, most Global Capability Centres (GCCs) in India have relied on OpenAI for AI-driven innovation. For instance, Lowe’s partnered with OpenAI on its AI initiatives even before the launch of ChatGPT. However, DeepSeek’s cost-efficient approach raises an important question: how will it impact GCCs in India? As hubs of cost arb