DeepSeek is an AI app that is shaking up the AI world. This is a Chinese AI app that is making waves across the industry. In a very short time, AI chatbot development services are outperforming Open AI’s ChatGPT in popularity on the app store.
But how? What makes the DeepSeek app so special is also shaking up the dominated giant players in the AI world.
As AI technology continues to evolve, DeepSeek has positioned itself as a game-changer because of its high-end features and uniqueness.
In this blog, we will talk about the hottest trend of DeepSeek, what exactly it is, how it’s revolutionizing the AI sector, how giant players are responding to it, and how it stacks up against ChatGPT and its future scope.
So, without any further delay, let’s dive in!
DeepSeek: Creator and Purpose
DeepSeek was founded in 2023 by Liang Wenfeng, a former math prodigy and hedge fund manager. The company is based in Hangzhou, Zhejiang province, and operates as part of High-Flyer, a hedge fund that Liang co-founded.
Liang’s goal with DeepSeek was to create powerful AI models that could compete with top companies in the West but at a much lower cost.
DeepSeek’s main mission is to build open-source large language models that perform well without needing a huge amount of computing power. This is a breakthrough because training AI models can be very expensive and energy-consuming.
DeepSeek’s approach helps make AI more affordable and available to smaller companies and organizations that don’t have a lot of money. By focusing on efficiency and ease of access, DeepSeek aims to spread the use of AI across many different fields.
Read Also: How ChatGPT can help Healthcare IT
Global Market Impact of DeepSeek
DeepSeeks’s AI model has majorly impacted the AI sector at a global level since its launch. Here are three major global market impacts:
1. Tech Stocks Drop
On January 27, 2025, major tech companies like Microsoft, Meta, Nvidia, and Alphabet saw their market value drop by over $1 trillion. Nvidia alone lost more than $600 billion.
2. Investors Concerns
The rapid rise of DeepSeek has made investors worried about the future of big Western tech companies. Many are concerned that DeepSeek’s affordable AI models could threaten the dominance of established companies in the AI market.
3. Shift in AI Power
The success of DeepSeek, along with other Chinese AI companies like Alibaba Gwen, shows that China is becoming a major player in the AI field. This could signal a shift in who leads the tech world.
What is DeepSeek?
DeepSeek is a Chinese AI company which has developed an AI reasoning chatbot called DeepSeek in 2023 by Liang Wenfeng. This model is quite similar to OpenAI’s ChatGPT model, but it’s designed for logical and reasoning tasks to break down complex problems into multiple steps. There are two versions launched in DeepSeek, i.e., DeepSeek R1 and DeepSeek R1 Zero. It means there’s strong performance, easy accessibility, and cost-effective solutions. What makes DeepSeek special is that it is open-source. This means anyone can access, modify, and use the code. This approach encourages collaboration and makes Generative AI development services a shared effort in the tech world.
How Does DeepSeek Work?
DeepSeek works using a smart technology called the Mixture of Experts (MoE), which sets it apart from many other AI models like GPT-4 or Llama 3. Instead of using the whole model for every task, DeepSeek activates only the parts of its “brain” that are needed for a specific job. This helps it work faster and more efficiently while still giving accurate answers.
Think of it like having a team of specialists, where only the right expert is called in to solve a problem.
The latest version, DeepSeek V3, uses 37 billion active parameters (decision-making parts) out of a total of 671 billion, making it one of the most advanced models. This design helps it perform complex tasks without wasting unnecessary resources.
To train DeepSeek, the creators used lots of data from different areas like language, coding, and math. This helps it handle many kinds of questions.
DeepSeek’s ability to focus on the task at hand – whether it’s understanding language, solving math problems, or writing code—makes it fast and accurate.
By using smart technology and focusing on efficiency, DeepSeek has the potential to become a powerful tool for businesses, researchers, and individuals who need quick and reliable AI help. Its speed and precision make it stand out in the AI world.
What Are the Key Features of DeepSeek?
Here are some key features that make DeepSeek stand out from other AI models:
Natural Language Processing
DeepSeek can handle complex language tasks like multi-step reasoning. It performs well on tests that measure the ability to understand complex questions. However, it’s not yet clear how well it does in casual conversations compared to models like ChatGPT, which is known for its natural, flowing dialogue.
Multimodal Capabilities
DeepSeek is mainly text-based. It does not currently process images, audio, or video. If future versions expand into this area, it could become even more powerful, but for now, it focuses on text.
Speed and Response Time
DeepSeek’s MoE architecture makes it faster by only using the parts of the model needed for a task. However, some users have reported slow response times or server issues, which could be a problem during busy times.
Customization
APIs allow businesses to connect AI with their existing tools. While other models, like OpenAI’s, offer well-documented APIs, it’s still unknown if DeepSeek has the same level of accessibility. Developers will need to see if it’s easy to use for large-scale projects.
API and Integration
For businesses, being able to customize an AI model is important. It’s not clear yet if DeepSeek allows businesses to fine-tune its features for specific needs. If it does, it could be a valuable tool for companies, but this is still uncertain.
Read Also: The Best AI Tools for 2024: A Comprehensive Guide
What is DeepSeek Used For?
There are so many areas where DeepSeek is very useful, including:
- Business Applications: It can help with customer support, automation, and content creation, like writing reports or product descriptions.
- Academic & Research Uses: DeepSeek can assist with data analysis, summarizing information, and language translation for students and researchers.
- Creative Uses: It helps with coding, writing outlines, or brainstorming ideas for developers and writers.
- Everyday Productivity: DeepSeek can help with tasks like note-taking, scheduling, and quick answers to make daily tasks easier.
How is DeepSeek Different from Other AI Apps?
The major reason that makes DeepSeek stand out from other AI apps is lower costs. While big companies spend billions on AI, DeepSeek claims to have created its model at a much lower price. This challenges the idea that advanced AI needs huge spending. The cost difference has caused a big reaction in the market. Companies like Nvidia have seen their value drop, showing how DeepSeek’s approach could disrupt traditional AI business models. Investors are worried about the changes DeepSeek brings to the AI industry.
DeepSeek vs Open AI’s ChatGPT
Here’s the quick comparison table between DeepSeek and ChatGPT:
| ChatGPT | DeepSeek | |
| Founded | 2015 | 2023 |
| Headquarters | San Francisco, Calif. | Hangzhou, China |
| Main Focus | Broad AI capabilities | Efficient, open source models |
| Key Models | GPT-4o, o1 | DeepSeek-V3, DeepSeek-R1 |
| Specialized Models | Efficient, open-source models | DeepSeek Coder (coding), Janus Pro (vision model) |
| Training Approach | o1: $15 (input), $60 (output) | DeepSeek-R1: $0.55 (input), $2.19 (output) |
| API pricing(per million tokens) | Limited | Mostly open source |
| Open Source Policy | Supervised and instruction-based fine-tuning | Reinforcement learning |
| Development Cost | Hundreds of millions of dollars for o1 (estimated) | Less than $6 million for DeepSeek-R1, according to the company |
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Conclusion
DeepSeek is transforming the AI world with its cost-effective, easy-to-access, and advanced models. With its focus on open-source accessibility and innovative features, DeepSeek is making high-performance AI available to a wider audience and creating new opportunities across industries. As the company continues to evolve, it is set to influence the future of AI, driving both competition and collaboration worldwide. We hope this article helps you understand everything about DeepSeek, its role in the AI sector, how it’s impacting the market and future scope.
FAQs
1. What Makes DeepSeek Stand Out from Other AI Companies?
DeepSeek stands out due to its cost-effectiveness, open-source model, and efficient AI performance. It offers advanced AI without the high costs seen in other AI companies.
2. How Has DeepSeek Affected the Global AI Market?
DeepSeek has disrupted the global AI market by offering affordable models, causing major companies like Nvidia to lose value. This has raised concerns among investors about the future of big tech companies.
3. How Does DeepSeek R1 Compare to ChatGPT?
DeepSeek R1 is more affordable and open-source compared to ChatGPT, which is more expensive and closed-source. While both are powerful, DeepSeek offers a more cost-efficient solution.
4. Is DeepSeek going to lower the cost of using AI for businesses?
Yes, DeepSeek’s models are designed to be much more affordable than other AI services, making AI accessible to smaller businesses and reducing the cost of AI adoption.
5. Can Developers Use DeepSeek for Custom AI Applications?
Yes, DeepSeek provides APIs, allowing developers to create custom AI applications and integrate them into their existing systems.
