Amazon and Microsoft Partner with Chinese Startup DeepSeek to Disrupt AI Market

Amazon has joined Microsoft in offering access to DeepSeek’s low-cost, open-source AI models. This move comes amid growing competition with U.S. tech giants like OpenAI and Meta. DeepSeek, backed by Chinese hedge fund High Flyer, offers significant price advantages, with its AI inference costs being much lower than OpenAI’s. Analysts warn that this emerging Chinese competitor may commoditize AI models, putting pressure on established players. As the U.S. races to maintain AI leadership, DeepSeek’s challenge intensifies, influencing Amazon’s cloud business and pricing strategies.