Microsoft rolls out DeepSeek's AI model on Azure

Microsoft rolls out DeepSeek's AI model on Azure

(Reuters) - Microsoft has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday.

The AI model will be available in the model catalog on the platforms and will join more than 1,800 models that Microsoft is offering.

DeepSeek last week launched a free AI assistant that it says uses less data at a fraction of the cost of incumbent services. By Monday, the assistant had overtaken U.S. rival ChatGPT in downloads from Apple's App Store, sparking panic among tech stock investors.

The move comes as Microsoft has been looking to reduce its dependence on ChatGPT maker OpenAI. The company has been working to add internal and third-party AI models to power its flagship AI product Microsoft 365 Copilot, Reuters reported last month.

Microsoft also said customers would soon be able to run the R1 model locally on their Copilot+ PCs, a move that could potentially ease privacy and data-sharing concerns over the use of the model.

DeepSeek has said it stores user information in servers in China, which could be a sticking point in its U.S. adoption.

Meanwhile, Microsoft and OpenAI are probing if data output from OpenAI's technology was obtained in an unauthorized manner by a group linked to DeepSeek, Bloomberg News reported on Tuesday.

DeepSeek bursting onto the AI scene has prompted rivals to respond, with OpenAI boss Sam Altman saying the company will "pull up some releases" - following which it released a tailored version of ChatGPT for U.S. government agencies on Tuesday.

China's Alibaba also released a new version of its Qwen 2.5 AI model on Wednesday, an unusual timing, considering it marked the first day of the Lunar New Year.

(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)