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Microsoft CEO Applauds DeepSeek’s AI Innovation as ‘Good News’

Microsoft's Satya Nadella Praises DeepSeek's AI Model

DeepSeek, the Chinese AI model that has surprised the tech industry and disrupted Wall Street with its low cost and strong performance, has \\"some real innovation\\" and is \\"all good news,\\" according to Microsoft CEO Satya Nadella.

Nadella made the remarks during Microsoft's quarterly earnings call on Wednesday, noting that AI development cycles are \\"no different\\" from regular computing. \\"The innovation we're seeing from companies like DeepSeek is exciting and beneficial for the industry,\\" he said.

DeepSeek-R1 Offered to Microsoft's Cloud Users

On the same day, Microsoft began offering the DeepSeek-R1 reasoning model to users of its cloud platform. The AI model is notable for exposing its \\"thought process,\\" allowing users to review and understand how it arrives at its conclusions.

Understanding 'Distillation' in AI Development

DeepSeek's approach involves a process known as 'distillation,' where a new AI model learns from a larger one by repeatedly querying it and analyzing the outputs. This methodology is detailed in DeepSeek's public research papers.

According to the Hangzhou-based company, they used the DeepSeek-R1 reasoning model as the \\"larger\\" model to teach other models, such as Alibaba's Qwen and Meta's Llama, enhancing their reasoning capabilities.

DeepSeek has made both the distilled models and the original R1 model available for free download. This enables individuals with less powerful computers, or even smartphones, to run the models offline with full control—an option not available to users of certain other AI services.

Experts Weigh In on AI Innovation

Tech investor and Cornell University lecturer Lutz Finger expressed his views on the situation, stating, \\"The use of distillation in AI development is a common practice and contributes to the advancement of the field.\\"

He added that making AI models more accessible helps democratize technology and fosters innovation across the industry.

(With input from agencies)

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