"We regularly evaluate all competitive models": DeepSeek AI reportedly outperforms Llama's next version, throwing Meta into panic mode with "4 war rooms of engineers" analyzing its cost-effective AI success

Mark Zuckerberg, chief executive officer of Meta Platforms Inc.
Meta is reportedly scrambling in response to DeepSeek. (Image credit: Getty Images | Bloomberg)

With the rapid emergence of Chinese AI startup, DeepSeek, top AI labs across the US are getting a run for their money. According to the research paper published by DeepSeek researchers, R1 surpasses proprietary AI models such as OpenAI's o1 reasoning model's capabilities across math, science, and coding at a fraction of the development cost.

Meta's AI lead, Yann LeCun, says DeepSeek AI's immense success and broad adoption can be attributed to the model's open-source nature. "Open-source models surpass proprietary ones," the AI lead explained, reiterating the importance of open-source models and DeepSeek potentially bringing OpenAI's original founding mission back to life.

However, Meta CEO Mark Zuckerberg has reportedly assembled four war rooms of engineers to investigate the secret ingredient to DeepSeek's "overnight" success in AI (via The Information). As you may know, DeepSeek's R1 AI is powered by DeepSeek's open-source V3 model, which was trained with approximately $6 million.

DeepSeek's AI is giving Meta sleepless nights

DeepSeek has rocked the AI world with its performance and efficiency. (Image credit: Getty Images | CFOTO)

Two teams from the four engineering war rooms will specifically focus on determining how the Chinese AI startup managed to lower the cost of developing and training its AI. Meta will reportedly leverage the information to guide the development of its next version of Llama AI. The remaining teams will be tasked with determining the data used to train DeepSeek's AI model, potentially dictating Llama's overhaul.

DeepSeek poses a significant challenge to US-based AI firms, including OpenAI, Anthropic, and Meta. It surpasses advanced AI models like Meta’s Llama 3.1, OpenAI’s GPT-4o, and Anthropic’s Claude Sonnet 3.5, all at a fraction of the cost.

According to two sources with close affiliations with the Facebook maker, Meta's AI infrastructure director Mathew Oldham reportedly indicated DeepSeek's flagship model potentially outperforms the next version of the company's Llama AI, which is slated to ship in early 2025.

While speaking to The Information, a Meta spokesman indicated:

“We regularly evaluate all competitive models in our development process and have done so since [the company’s] Gen Al [group] was formed. Llama has been foundational in establishing the ecosystem for open-source AI models, and we couldn’t be more excited to extend this leadership with the upcoming release of Llama 4.”

Related: OpenAI invests $500 billion in Stargate to bolster AI advances

Elsewhere, Meta CEO indicated that the company is setting aside up to $65 billion to facilitate its AI advances, including constructing data centers and new hires. As you may know, Mark Zuckerberg painted a picture of a potential future where middle-level AI engineers claim software engineering jobs from professionals at Meta in 2025.

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Kevin Okemwa
Contributor

Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You'll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.