What is DeepSeek AI?

DeepSeek AI is a free AI-powered chatbot that closely resembles OpenAI’s ChatGPT in functionality and user experience. It is capable of handling various tasks, including text generation, problem-solving, and coding, positioning itself as a strong competitor in the AI chatbot landscape.

DeepSeek was officially launched on January 10, 2025, with the release of its first chatbot application based on the DeepSeek-R1 model. The chatbot is available for Apple iOS and Android, making it easily accessible worldwide.

Although its full capabilities are still being evaluated, early reports suggest that DeepSeek performs at a level comparable to OpenAI’s o1 model, which was released at the end of 2024. It has shown exceptional proficiency in mathematics and coding, making it an attractive tool for developers, researchers, and general users who require advanced AI-powered assistance.

One of the key aspects that sets DeepSeek apart is its commitment to open-source AI. Unlike many proprietary models, DeepSeek makes its algorithms, models, and training details publicly available, fostering collaboration and innovation in the AI community.

Watch our YouTube Video about DeepSeek,

Who Developed DeepSeek?

You might be wondering “Who is the founder of DeepSeek?”

DeepSeek AI is developed by DeepSeek (Shēndù Qiúsuǒ), a Chinese artificial intelligence company headquartered in Hangzhou, Zhejiang. The company was founded in 2023 by Liang Wenfeng, who also serves as its CEO.

Unlike many AI startups that rely on multiple investors, DeepSeek is solely funded by the Chinese hedge fund High-Flyer, which has played a crucial role in supporting its research and development.

High-Flyer, a well-known financial firm, is recognized for its strategic investments in cutting-edge technologies. Liang Wenfeng, the co-founder of High-Flyer, leveraged his financial and technological expertise to establish DeepSeek, aiming to advance AI innovation through open-source development.

With a strong backing and a vision centered on open-source AI, DeepSeek has positioned itself as a major player in the artificial intelligence landscape, offering accessible and high-performance AI solutions to developers, researchers, and everyday users.

How Does DeepSeek Compare to Other AI Models?

DeepSeek AI stands out among AI models for several key reasons, particularly in terms of cost efficiency, hardware usage, and market impact.

Cost-Effective AI Performance:

The DeepSeek-R1 model, released in January 2025, is reported to be 20 to 50 times cheaper compared to OpenAI’s o1 model, depending on the task. This claim was made in a post on DeepSeek’s official WeChat account. Such a drastic reduction in operational costs makes DeepSeek an attractive alternative for businesses, researchers, and developers seeking AI-powered solutions at a fraction of the price.

Lower Hardware Requirements:

One of DeepSeek’s most groundbreaking aspects is its ability to deliver high-level AI performance while using fewer advanced chips. Unlike industry leaders like OpenAI, which rely on large-scale, high-cost GPU clusters, DeepSeek’s model is designed to operate more efficiently on less sophisticated hardware. This approach significantly lowers production costs while still maintaining competitive AI capabilities.

Impact on the Global Market:

DeepSeek’s innovation has already had major financial implications, particularly for the chip-making industry. On Monday, January 15, 2025, the global semiconductor giant Nvidia suffered a staggering $600 billion loss in market value—the largest one-day loss in U.S. history—due to concerns that AI companies like DeepSeek could reduce demand for its high-end chips. This event highlights how disruptive DeepSeek’s cost-efficient AI technology could be to the AI and hardware industries.

Comparison to Other Chinese AI Models:

DeepSeek follows a trend seen in other Chinese AI models, such as:

• Baidu’s Ernie
• Doubao by ByteDance

Like these models, DeepSeek is trained to avoid politically sensitive questions, aligning with regulatory and censorship policies in China.

Ownership & Investment:

Another factor that sets DeepSeek apart is its private ownership. Unlike publicly traded AI companies, DeepSeek is privately owned, meaning investors cannot buy shares of the company on any major stock exchange. This makes it a unique entity in the AI industry, where many competitors are backed by public funding and investor contributions.

DeepSeek is carving out a niche in the AI market by offering a cost-effective, hardware-efficient alternative to industry giants like OpenAI. Its disruptive technology has already made waves in both the AI and semiconductor industries, positioning it as a key player in the evolving AI landscape.

The Future of DeepSeek

DeepSeek is poised to become a major force in the AI industry, thanks to its open-source approach, cost efficiency, and innovative technology. As the chatbot continues to evolve, its impact will likely extend beyond just being an alternative to OpenAI’s ChatGPT—it could reshape the global AI landscape, particularly in China’s push for technological independence.

With its competitive performance and significantly lower operational costs, DeepSeek has already drawn comparisons to some of the most advanced AI models on the market. Its ability to operate efficiently with fewer advanced chips makes it a scalable and sustainable alternative for businesses and developers.

If DeepSeek continues to improve its capabilities while maintaining its cost advantage, it could attract widespread adoption, especially in markets where AI accessibility and affordability are critical factors.

A Major Win for China’s AI Ambitions:

DeepSeek’s rise represents a significant milestone for China’s tech industry, particularly as the Chinese government continues its efforts to reduce reliance on Western technology. Over the past decade, China has invested heavily in homegrown AI research, semiconductor development, and data infrastructure to strengthen its position in the global technology race.

DeepSeek’s success aligns with these national goals, providing a powerful, locally developed AI model that could rival Western counterparts like OpenAI’s GPT series or Google’s Gemini. By keeping its AI research and development within China, DeepSeek also contributes to the country’s broader strategy of fostering self-sufficiency in critical technologies.

Challenges & Potential Roadblocks

Despite its promising trajectory, DeepSeek will face several challenges:

• Regulatory Restrictions: Like other Chinese AI models, DeepSeek operates under strict government oversight and is trained to avoid politically sensitive topics. This could limit its appeal to users outside China who seek more unrestricted AI responses.
• Global Competition: OpenAI, Google, Anthropic, and other leading AI firms continue to push the boundaries of AI sophistication and multimodal capabilities. To compete, DeepSeek will need to consistently improve its reasoning abilities, expand its dataset training, and enhance its user experience.
• Adoption Outside of China: While DeepSeek is a strong contender within China, its international adoption may be limited due to geopolitical tensions, concerns over data security, and differences in AI regulations between China and Western nations.

The Road Ahead

Looking forward, DeepSeek has the potential to be a game-changer in AI development. By offering an affordable, open-source AI model, it encourages innovation and collaboration, particularly within China’s AI research community. If it can address its limitations and continue to refine its technology, DeepSeek could become a dominant AI platform both domestically and—if geopolitical factors permit—on the global stage.

DeepSeek is more than just another chatbot—it’s a symbol of China’s growing AI ambitions and a powerful example of how AI can be developed in a cost-efficient, open-source, and hardware-conscious way. Whether it remains a primarily China-focused AI solution or expands into a global AI contender will depend on how it navigates regulatory challenges and keeps up with the rapidly evolving AI industry.

As a digital marketing agency based in Melbourne, Australia, we are always staying ahead of the curve when it comes to AI trends and innovations. From cutting-edge chatbots to groundbreaking AI tools, we keep a close eye on the latest developments shaping the digital world. Stay tuned to our blog and YouTube channel for the most up-to-date insights, expert analyses, and practical applications of AI in marketing and beyond!