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DeepSeek Gives European Companies A Chance To Close The AI Gap

IIn the world of artificial intelligence, the rise of DeepSeek is offering European companies a significant opportunity to level the playing field. Hemanth Mandapati, the CEO of the German startup Novo AI, was among the first to shift from OpenAI’s ChatGPT to the Chinese AI model, DeepSeek, just two weeks ago. Speaking at the GoWest conference in Gothenburg, Sweden, Mandapati explained how easy it was to migrate.

“If you’ve already built your app with OpenAI, migrating to other models is simple… it only takes us minutes,” Mandapati said in an interview.

DeepSeek’s entry into the AI landscape is having a significant impact, particularly on pricing models. Interviews with startup leaders and investors reveal that the company’s affordable pricing structure is forcing competitors to reconsider their pricing and improve their models. According to Mandapati, DeepSeek’s pricing is five times lower than what competitors offer.

“DeepSeek offered pricing that was five times cheaper than competitors,” Mandapati explained. “I’m saving a lot of money, and users won’t notice any difference.”

European startups have long faced challenges in keeping pace with their American counterparts, primarily due to easier access to funding and resources. However, with DeepSeek’s cost-effective technology, European companies now have a chance to close the gap.

“This is a huge step toward democratizing AI and leveling the playing field with major tech giants,” said Seena Rejal, CEO of Netmind.AI, a UK-based company and one of DeepSeek’s early users.

Research from Bernstein analysts shows that DeepSeek’s pricing is 20 to 40 times lower than OpenAI’s. For example, OpenAI charges $2.50 for every $1 million in input tokens, while DeepSeek charges just 0.014 dollars for the same amount.

Despite the promising advantages, there are regulatory concerns. DeepSeek is under investigation in several European countries to determine whether it has copied data from OpenAI or if it is censoring responses to avoid negative portrayals of China.

A Shift In The AI Market

In 2024, the U.S. saw nearly $100 billion in venture capital investments in AI companies, while Europe only managed $15.8 billion, according to PitchBook data. Meanwhile, U.S. President Donald Trump recently unveiled Stargate, a $500 billion joint venture between OpenAI, SoftBank, and Oracle.

In Europe, investments in AI remain modest. However, some companies, like France’s Mistral, are managing to compete with the major players such as OpenAI, Meta, and Google. DeepSeek caught attention after it was revealed that the cost of training its DeepSeek-V3 model was less than $6 million using NVIDIA H800 computing power, making it one of the most affordable AI models to date.

“This shows that bigger isn’t always better,” said Fabrizio del Maffeo, CEO of Axelera AI. “As AI models become more accessible, costs fall, and barriers to innovation decrease, accelerating industry development.”

While some analysts question whether DeepSeek’s training costs are as low as reported, there’s no doubt that they are significantly cheaper than their U.S. counterparts. Ulrik R-T, CEO of Empatik AI, a Danish startup, sees DeepSeek as an opportunity for companies without large budgets.

“It proves we don’t need enormous budgets to realize our vision,” R-T said.

The Price War Begins

The shift in pricing has already triggered changes in the industry. Recently, Microsoft announced it would offer its OpenAI-powered logical reasoning model for free to Copilot users, a departure from its usual $20 per month subscription fee.

“AI prices are falling, so future solutions are likely to focus on more transparent, open-source models—even if they come from China,” said Joachim Schelde of Scale Capital.

However, larger corporations like Nokia and SAP are more cautious about these developments. According to Alexandru Voica, head of the corporate department at Synthesia, a UK-based company valued at $2.1 billion, price is just one factor.

“Other considerations include security certifications and software ecosystems that allow companies to integrate AI solutions into their platforms,” Voica added.

Google Launches AI-Driven Scheduling Tool For Gmail And Calendar

Google has unveiled an innovative AI-powered scheduling feature designed for Gmail and Google Calendar users. Harnessing the advanced capabilities of its Gemini engine, the new ‘Help Me Schedule’ tool simplifies the process of arranging one-on-one meetings by automatically suggesting optimal times based on your calendar availability.

Streamlining The Scheduling Experience

Embedded directly beneath the email compose interface, the feature displays a range of available time slots sourced from your personal calendar. Users can customize these suggestions by modifying or removing specific time options before inserting them into their outgoing messages. Once a recipient selects a time, the system seamlessly updates both parties’ calendars, eliminating the need for manual coordination.

Contextual Intelligence For Maximum Efficiency

Distinguishing itself from other scheduling solutions like Calendly and Doodle, Google’s tool leverages contextual information from the email content. For instance, if a message specifies a 30-minute meeting, the AI will exclusively propose half-hour slots that align with your availability, ensuring meetings are scheduled precisely and efficiently.

Enhancing The Google Workspace Ecosystem

This launch is part of a broader series of updates aimed at further integrating AI into everyday business tools within Google Workspace. Recent enhancements include the introduction of the Nano Banana image editing model in Google Slides, the ability to share custom AI assistants known as Gems, new formats in NotebookLM, and improved AI video tools in Google Vids. Each of these updates underscores Google’s commitment to innovation and streamlined productivity in the digital workspace.

Additional Updates And Strategic Outlook

Alongside the new scheduling tool, Google has made significant improvements to its productivity features. Notably, Google Keep reminders will now be automatically saved to Google Tasks, ensuring even greater integration across the company’s productivity suite. As organizations increasingly rely on smart, integrated digital tools, these updates position Google at the forefront of workplace efficiency and technology innovation.

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