DeepSeek AI. Everything Everyone Needs to Know Deepseek AI. Everything you need to know. What it is, who's behind it and why it's in the news.

in Generative AI

January 27, 2025 5 min read
DeepSeek AI. Everything Everyone Needs to Know

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So, the plastic-y looking, AI generated hills, are alive with the sound of DeepSeek. Everyone is talking about it – and rightfully so. Let’s dig into what DeepSeek AI is all about, who’s behind it, and what’s the big fuss all about.

They’ve got the internet, specifically the AI community hook, line, and sinker. If you haven’t guessed by now, this blog will contain a plethora of fishy puns – given that DeepSeek’s logo is a whale.

DeepSeek is a Chinese artificial intelligence (AI) company that’s recently made significant waves in the tech industry. In an industry where every small step forward is hailed as innovative, DeepSeek has apparently made a pretty big leap.

Founded in 2023 by Liang Wenfeng, DeepSeek has rapidly emerged as a player in the AI landscape everyone should pay attention to.

What is DeepSeek?

At its core, DeepSeek is an AI research lab dedicated to developing open-source large language models (LLMs). Unlike many of its Western counterparts, DeepSeek emphasizes transparency and accessibility, making its models available for public use and collaboration.

What Does DeepSeek do?

DeepSeek’s flagship models, such as DeepSeek-V3 and DeepSeek-R1, have garnered attention for their impressive performance metrics. For instance, DeepSeek-V3 boasts a significant breakthrough in inference speed, topping leaderboards among open-source models and rivaling advanced closed-source counterparts globally.

Moreover, DeepSeek-R1, released in January 2025, is designed for complex problem-solving, including logical inference and mathematical reasoning.

Notably, it was developed at a fraction of the cost of similar models, utilizing less than $6 million in computing power.

DeepSeek made a splash with the cost, rather than its capabilities. It’s the $6 million price tag that’s got people going “whoa”. OpenAI for instance, assumedly, shelled out $12 million for just one iteration of training for ChatGPT 3. ChatGPT 4, probably more. Overall, the industry as a whole is estimated to spend over 100 million dollars in just training.

DeepSeek did it with roughly $6 million. Also, we live in the age where $6 million is such a small number that it causes the internet to be shocked at how cheap it is.

Features that Make DeepSeek Unique

The most unique and innovative aspect of DeepSeek lies in its open-source approach to high-performance AI models. While many top-tier AI companies maintain their advancements behind proprietary walls, DeepSeek has taken a bold step by making its models, like DeepSeek-V3 and DeepSeek-R1, freely available for public use and collaboration.

This is significant for a few reasons:

1. Democratization of Advanced AI

DeepSeek’s decision to share its cutting-edge AI tools levels the playing field, enabling smaller companies, individual developers, and researchers to access powerful AI technology without the heavy costs typically associated with such systems. This disrupts the status quo, where only major corporations could afford advanced AI capabilities.

2. Cost-Effective Development

DeepSeek has demonstrated that world-class AI doesn’t need exorbitant budgets. For example, DeepSeek-R1 was developed with less than $6 million in computing resources, a fraction of what competitors like OpenAI or Google might spend on comparable systems. This cost-efficiency challenges the industry’s dependency on massive compute power and showcases innovative methods for AI training.

3. Blazing Inference Speeds

DeepSeek’s models are optimized for efficiency, with DeepSeek-V3 achieving record-breaking inference speeds among open-source models. This capability is a game-changer for real-time applications, from chatbots to large-scale simulations, where latency can make or break user experience.

4. Focus on Logical Reasoning and Problem Solving

Unlike many AI models that excel primarily in natural language processing, DeepSeek’s DeepSeek-R1 is tailored for tasks like mathematical reasoning and logical inference. This positions it as a versatile tool for industries requiring analytical precision, such as finance, engineering, and research.

5. Shifting Industry Norms

DeepSeek’s open-source ethos has sparked significant disruption in the tech industry. By showing that transparency can coexist with profitability and innovation, it’s pushing competitors to rethink their strategies. The ripple effect has even impacted major tech companies and semiconductor manufacturers, whose stocks have seen fluctuations due to DeepSeek’s advancements.

Why All the Buzz?

DeepSeek isn’t just a new AI player—it’s a paradigm shift. Its combination of accessibility, performance, and cost-effectiveness is reshaping what’s possible in AI development. In doing so, it’s sparking a wave of curiosity, concern, and admiration across industries worldwide.

DeepSeek Use Cases

DeepSeek’s models have a wide array of applications:

  • Code Generation and Debugging: Assisting developers in writing and troubleshooting code efficiently.
  • Complex Problem-Solving: Tackling advanced mathematical and logical challenges.
  • Data Analysis: Interpreting large datasets to extract meaningful insights.
  • Natural Language Understanding: Enhancing chatbots and virtual assistants for more human-like interactions.

Origins Story and Leadership

DeepSeek was established by Liang Wenfeng, who also co-founded the hedge fund High-Flyer. Initially, High-Flyer focused on AI and algorithm-based trading before branching out into broader AI research, leading to the creation of DeepSeek.

Industry Impact

The release of DeepSeek’s models has had a profound effect on the tech industry. Their open-source nature and cost-effective development have challenged the prevailing notion that high-performance AI requires substantial financial and computational resources. This has led to significant market reactions, including declines in stock prices of major tech companies and chip manufacturers.

DeepSeek’s AI Assistant has rapidly gained popularity, becoming the top-rated free application on Apple’s App Store in the United States. This surge indicates widespread individual adoption.

DeepSeek does not, not yet at least, tout who its customers are, but we can imagine that there are quite a few big names clamouring toward them. It’s plausible that various developers and companies are exploring or integrating these tools into their applications.

But without official disclosures, identifying specific users remains speculative.

DeepSeek represents a paradigm shift in AI development, emphasizing efficiency, accessibility, and open collaboration. Its rapid ascent underscores the dynamic and evolving nature of the global AI landscape.

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