What is DeepSeek AI? All About DeepSeek and Its Uses
In the AI world, it was believed that developing advanced large language models would require significant technical expertise and millions. This perception was further strengthened when the U.S. government offered support for the $500 billion Stargate Project, a massive AI project announced by President Donald Trump.
However, this case is no longer applicable to Chinese AI firm DeepSeek. On 20 January 2025, DeepSeek unveiled its R1 LLM at a quarter of the expense associated with innovations like this in the past. The more sensational thing about the news is that DeepSeek's R1 models are open-source and free for everyone to download and use.
Soon after the launch, the mobile app powered by DeepSeek R1 reached the top position in Apple's App Store charts, beating the OpenAI-owned ChatGPT app. The rapid adoption created a significant stock market reaction on January 27, 2025, sending investors into selling mode.
Major U.S. AI giants including Nvidia, Microsoft, Meta Platforms, Oracle, and Broadcom saw significant stock value declines as investors reassessed the valuations in the AI market in light of DeepSeek's disruption.
What is DeepSeek?
DeepSeek is one of the Chinese AI research labs, quite similar to OpenAI, and is funded by the hedge fund High-Flyer. In contrast to most commercial AI labs, DeepSeek has taken a fully open-source approach in which its models can be used commercially free of charge. The company released several AI models but named each “DeepSeek,” followed by a version number.
The excitement around DeepSeek stems from the launch of its latest model, DeepSeek-R1, an upgraded version of DeepSeek-V3. This model enhances reasoning using the “chain-of-thought” methodology.
This technique enables AI to break down problems into logical steps, significantly improving its ability to tackle complex tasks. OpenAI’s GPT o1, recognized as one of the best AI models for math, science, and programming queries, also utilizes this approach.
DeepSeek-R1 is making headlines as the open-source model that catches up very closely to GPT o1, both in terms of performance and access.
OpenAI and DeepSeek Relationship
Although OpenAI and DeepSeek share a common goal as an advancement for AI, the approach is so different. OpenAI positioned itself first by developing proprietary AI models with premium pricing. DeepSeek, on the other hand, embraced open-source AI as a way of making it more accessible and innovative for developers worldwide.
More notably, OpenAI has massive investments from some of the largest technology companies in the United States, such as Microsoft, while DeepSeek runs under High-Flyer, which is a quant hedge fund located in China. The distinct ownership and investments have made their strategic approach.
Why is DeepSeek Getting More Popular?
The breakthrough was achieved by DeepSeek engineers from a different approach to AI training.
The most advanced AI chips are both costly and hard to get because of the U.S. trade restrictions, but by contrast, DeepSeek trained its model using about 2,000 Nvidia H800 chips, a less powerful alternative.
To offset lower processing power, DeepSeek devised a system by which multiple specialist AI models cooperated, hence optimizing performance and efficiency.
They were able to achieve high-level AI capabilities in a way they could not by using the resources that industry heavyweights like OpenAI depend upon.
This impressed many users, which prompted 2.6 million downloads from Google Play, ranking it number one on Play store. Here you can download DeepSeek R1.
Key Features of DeepSeek
1. Open-Source AI Models
DeepSeek is a unique open-source strategy where AI models are free for both research and commercial use. This opens up AI development to the global community, not to be held by a few corporations.
2. Cost-Effective AI Development
DeepSeek's capacity to create cutting-edge AI models at a significantly lower cost than its competitors gives rise to vital questions about the sustainability of expensive AI projects. With development costs of only $5.6 million for its latest model, DeepSeek demonstrates that cutting-edge AI does not have to carry a billion-dollar price tag.
3. High-Performance Capabilities
DeepSeek-V3 and DeepSeek-R1 have been benchmarked against top AI models that have scored impressive results in areas like mathematics and programming, as well as natural language processing. These systems' reasoning and problem-solving abilities make them compelling alternatives to more expensive proprietary models.
4. Market Impact and Stock Reactions
DeepSeek has left its mark on the stock market. After DeepSeek R1 hit the shelves, major technology stocks such as Nvidia, Microsoft, and Meta witnessed a drop, as investors revisited valuations of the AI market. It is also proof of how powerful Chinese AI firms are shaping the global AI horizon.
Role of DeepSeek in the Stock Market
DeepSeek has impacted the financial industry significantly. Rapid adoption of its AI models has caused growing anxiety among investors regarding the long-term supremacy of AI firms operating from the United States alone. The selling of stocks after the launch of DeepSeek reflects broader uncertainties about AI's future leadership.
However, analysts argue this may also provide more motivation and opportunities for corporations to try more open-source models of AI while saving a small fortune in expense. DeepSeek may potentially remodel the future if it keeps raising the bar: global AI trends and investments, that is.
Does DeepSeek Benefit the World?
The release of great-quality, open-source AI models into the market is showing promise in the access and availability of AI going forward. Despite increased competition in the AI arena, the increased availability of AI technology adds to the books of companies, researchers, and developers worldwide.
Open-source models such as DeepSeek cut costs and enable innovation where smaller companies are in a position to compete with the big corporations going into the AI ecosystem.
Dealing with such a paradox, although companies like OpenAI and Google are still in the lead in infrastructure and data access advantage, DeepSeek's rising charts the future of new entrants in roiling the industry. In the long run, the AI landscape will certainly flourish in a more competitive market.
Conclusion
DeepSeek is barging into the AI market by offering top-of-the-line, open-source models at one-tenth of the cost that its competitors sell for. The approach goes against the hegemony of proprietary AI models and speaks to a greater shift toward greater accessibility and affordability in AI development.
The influence of DeepSeek on the market, competition, and innovation as AI continues to evolve will be watched closely.
The future of AI is no longer limited to a few elite corporations. Open-source models such as DeepSeek are changing the game, and AI applications are expanding rapidly, making this an exciting time for researchers, businesses, and technology enthusiasts worldwide.
KEY TAKEAWAYS:
- By developing a powerful AI model at a fraction of the cost, DeepSeek challenges the notion that cutting-edge AI requires billions in funding.
- Unlike OpenAI’s proprietary models, DeepSeek offers free and open-source AI models, making AI development more accessible to researchers and businesses.
- DeepSeek used less powerful Nvidia H800 chips and optimized them through multiple specialized AI models working together, proving that high-end chips aren’t always necessary.
- DeepSeek’s rapid adoption led to major stock declines for the U.S. AI giants like Nvidia, Microsoft, and Meta, shaking up AI market valuations.
- With DeepSeek’s success, open-source AI is gaining momentum, challenging traditional AI giants and pushing the industry toward more affordable and competitive innovation.
FAQs
Q: What is the primary use of DeepSeek?
A: DeepSeek is an AI research lab that develops open-source AI models designed for reasoning, problem-solving, programming, and natural language processing.
Q: Is DeepSeek better than ChatGPT?
A: DeepSeek competes closely with ChatGPT in performance, particularly in areas like mathematics and programming, but its open-source nature sets it apart.
Q: What is the DeepSeek controversy?
A: DeepSeek’s rapid rise has sparked debates about AI accessibility, market disruptions, and the growing influence of Chinese AI firms.
Q: Who owns DeepSeek?
A: DeepSeek is backed by the Chinese hedge fund High-Flyer.
Q: Is DeepSeek free?
A: Yes, DeepSeek’s AI models are open-source and available for free use.
Q: How safe is DeepSeek?
A: Like any AI model, DeepSeek’s safety depends on its implementation and use cases. Open-source models require responsible deployment.
Q: Is DeepSeek available in India?
A: As an open-source model, DeepSeek is accessible worldwide, including in India.
