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Artificial Intelligence
The DeepSeek challenge
The sense that the US retains a commanding lead in the AI race suffered a significant blow in early 2025 when DeepSeek, a small Chinese computer lab using open sources, released its R1 LLM model. Unlike its US rivals, DeepSeek made its research approach to LLM-building public; it also revealed it was able to use Nvidia GPU chips more effectively than its rivals. Most significantly. DeepSeek claimed it used only 2,048 Nvidia H800 chips and an investment of US$5.6m to train a model with 671bn parameters.
- Introduction
- The slow-burn rise in AI
- Case studies: what is AI being used for in LAC?
- Is Latin America ready?
- The opportunity and risks of AI
- AI in LAC, as seen by ChatGPT.
- Quantifying the gains
- Will the bots destroy Latin American jobs?
- The big AI obstacle in LAC: labour informality
- The DeepSeek challenge
- The promise of Latam-GPT
- Rising data centre energy demand
- The European strategy
- Latin America faces regulatory challenges
- Brazil: pushing new legislation
- Mexico: slow development
- Chile: leader in regulation
- Argentina: seeking low regulation to attract investors
- Colombia: more than half the country’s companies are investing in AI
- Conclusion – a game of high stakes