Shockwaves in the tech world how An AI chatbot rocketed to the top of app stores overnight. What exactly DeepSeek is and how does it challenge the giant Silicon Valley?
DeepSeek was discovered by Liang Wenfeng in December 2023. In January 2025, the AI chatbot rose at the top of Apple apps and a free downloaded app disrupted the U.S. market.
What Is DeepSeek?
Chinese startup DeepSeek is an R1 AI model. It was founded by a Chinese entrepreneur named Liang Wefeng.
It is considered groundbreaking as a new artificial intelligence model that promises to be radically more accessible and efficient.
DeepSeek is an artificial intelligence started in the city of Hangzhou, the capital city of Zhejiang. The company released different AI models similar to openAI, ChatGPT, and Google Gemini.
On January 10th the startup released its chatbot app based on the DeepSeek-V3 model. It was an AI assistant and ChatGPT. It worked according to the prompts given.
DeepSeek is based on Open source and is more transparent in responses. The open-source model means it’s R1 and freely accessible and supports the global AI community through open program code.
DeepSeek has even overtaken ChatGPT in the Apple App Store ranking. It’s a clear indication of the strong demand for the technology.
DeepSeek Release History
Several iterations were involved for the final arrival of the DeepSeek setup. With every model before DeepSeek, there were limitations and lacking. A detailed history of Deepseek from DeepSeek Coder to DeepSeek R1 model.
| Versions/ AI models | Release Dates | Features |
| DeepSeek-Coder | November 2023 | Open-source model designed for coding. |
| DeepSeek-V2 | May 2024 | Included 4 models 2 pre-trained 2 chat deepseekAi |
| DeepSeek-V2.5 | September 2024 (Updated in December 2024) | Combined DeepSeek-V2-ChatDeepSeek-Coder-V2-Instruct. |
| DeepSeek-V3 | December 26, 2024 | An Expert model with 671 billion parameters. Trained on a dataset of 14.8 trillion tokens. |
| DeepSeek-R1 | January 10, 2025 | Free chatbot app for IOS Android based on the R1 model. |
How Does The DeepSeek R1 Model Work?
The R1 model works on innovation technology. It is a cost-effective and efficiency-optimized model with various features. The features and functions include
Computing Edge Technology
This model has around 2,000 chips of H800 from Nvidia a U.S.-based company known for the chips constructions.
It was the slightly low version of the high-performing chips of Nvidia H100. The use of hardware control cost-effective chips made the model more effective.
The total training cost was just $5.6 million, less than the hundred million dollars spent on OpenAI models.
Innovative Architect Structure
Instead of using a large language model like ChatGPT, DeepSeek uses smaller models that perform specialized tasks more efficiently.
R1 model uses a Mixture of expert (MOE) architecture than large language models like ChatGpt. This design helps subnetworks or experts who seek input. Each model ensures the specific task performance with optimized resources.
Boost In Learning Approach
DeepSeek adds reinforcement of learning methodology by using a technique known as group relative policy Optimization (GRPO). this helps in breaking down complex decision-making processes.
“Deepthink” Technology
DeepSeek R1 model has a special feature of “Deep Think”. This helps the users to see the AI thinking and decision-making process. It provides the ability to read AI’s thoughts.
What’s The Market Reaction To DeepSeek?
Tech stock prices dropped on Monday 27 January, 2025 due to Deepseek surprise release, and companies like Nvidia a chip production company faced backlashes.
Big and leading companies in the U.S. are investing billions of dollars in AI technology. The competition of Chinese technology is going ahead and people are curious about it.
On Tuesday, Navida’s prices were still below from previous week. Many tech stocks are bouncing back and have recovered.
On Monday, Nvidia called DeepSeek an excellent AI development and achievement with emphasis on Navidia’s hardware cruciality with AI processing.
DeepSeek also claimed to use Navidia’s chips for the AI training model which also caused concerns in the tech market.
How Is DeeSeek Different Than Other AI Apps?
DeepSeek vs chatGPT or OpenAI is a debate. Which one is better and which one is performing better?
DeepSeek API is based on an open-source language model based on Interference time computing. Let’s see the further features with differences
| Features | DeepSeek Model | Other AI Apps |
| Cost Efficiency | Designed with lower costs ($5.6M vs billions for competitors) | Comparatively required higher budgets for development and training. |
| Specialization | Uses a “mixture-of-experts” model, and activates relevant submodels for a particular task. | Generalized models activate all components. More resource use |
| Open Source model | Offers open-source access. Maintains user privacy. | It’s a closed source. requires subscriptions for advanced features |
| Availability | Available on mobile and desktop apps; simpler UI for new users. | Integration with platforms like iOS (Siri) and voice interaction modes |
Why Is DeepSeek Disrupting The Tech Industry?
The introduction of OpenAI’s ChatGPT in 2022 caused a rush in Chinese firms, they were trying to introduce their own Chatbot based on Artificial Intelligence.
They introduced several models with iterations like Giant Baidu and opened new tabs but they caused disappointment. There was a huge gap between U.S. and Chinese firms with AI capabilities.
The efficiency and cost-effectiveness of DeepSeek have moved the stock market upside down. The U.S. Silicon Valley flipped with the release of the DeepSeek R1 model.
The R1 model has not only changed the technological landscape but also the stock of the US chipmaker dropped by 17 percent.
It posed a loss of 589 billion dollars in market value. This business model is a live example of a successful AI model with less expensive hardware technology.
The analyst estimated that this model is 40 times cheaper than previous AI models.
China is becoming a leader in new AI Tech with the introduction of Deepseek technology. This is also building pressure on other tech companies for faster innovations.
What Attracts Investors To DeepSeek Technology?
The DeepSeek R1 model is a low-cost open-source tech giant. Companies are investing in Artificial intelligence infrastructures.
- DeepSeek technology attracts investors because the companies that follow R1 technology will result in higher investments. The investments in other companies will look unnecessary.
- The use of lower-cost technology in DeepSeek questions the Nvidia company and lowers the market position.
- DeepSeek can gain further market share, especially in the markets looking for AI cost-effective solutions.
Final Thoughts
Organization looking for new solutions in AI-driven technologies needs a strategic approach. Adopting emerging technologies requires more technicalities. DeepSeek has sent a strong signal to the AI world. Lower cost and high technology can coexist at the same time and can redefine the global technological landscape.
FAQs
Who Owns DeepSeek?
Liang Wenfeng, who founded DeepSeek in 2023, was born in southern China’s Guangdong and studied in eastern China’s Zhejiang province.
What Is DeepSeek?
DeepSeek is a Chinese AI startup. The specializations of this model include low-cost, high-performance.
What Is DeepSeek Ai?
DeepSeek is a Chinese artificial intelligence company based on open-source large language models. This model works like Chatgpt and OpenAi.
Is DeepSeek A Chinese Company?
Yes, DeepSeek is a Chinese company. It was founded in July 2023 in Hangzhou.
What Is DeepSeek Used For?
DeepSeek is used as an AI Assistant. It is a chatbot to solve queries and any inquiries that need to be solved.
What Does Deepseek Mean For Nvidia?
DeepSeek is a challenge to Nvdia and other tech companies. It is threatening the position and dominance of Nvidia.
How Much Is DeepSeek Stock Worth?
It is a privately held startup that reportedly developed its AI model for only $5.6 million.
+ There are no comments
Add yours