Everything You Need To Know About DeepSeek

Have you seen the 2022 Netflix show, The Playlist? If not, let us quickly tell you the plot: it's about how Spotify changed the music business by going up against record companies, piracy, and even the way we think about owning music.

In a key scene, Daniel Ek, the co-founder of Spotify, presents his ideas to leaders from record labels. They laugh at the idea of free streaming because they think that piracy is the biggest threat to their business.

However, Ek had a different insight. He saw that the real disruption wasn’t about battling piracy, it was about making streaming faster, easier, and better than any alternative. Fast forward to today, and we all know how that played out.

Spotify didn’t just compete with the traditional music industry, it redefined it!

Now something similar has happened in the past few weeks in the domain of AI. Well, you already know that the launch of DeepSeek-R1, an open-source reasoning Large Language Model (LLM), is redefining how we interact with Artificial Intelligence!

Much like Spotify’s bold vision, DeepSeek (particularly with it's reasoning model) is challenging the dominance of big Artificial Intelligence (AI) players like OpenAI, Anthropic and Google.

While these AI giants operate behind paywalls and proprietary models, DeepSeek is flipping the script with an open-source, community-driven approach, akin to how Spotify made streaming more accessible than ever before.

Although, what exactly is DeepSeek, and why should you care?

Well, DeepSeek is shaking up the AI landscape with its roots in cutting-edge research, and is set to redefine how we think about AI - but don’t take our word for it.

According to MIT's Computer Science and Artificial Intelligence Laboratory (CSAIL), DeepSeek’s open approach is speeding up AI development by making models cheaper and more accessible to train. Now, isn’t that something?

So let's dive into the nitty-gritty of DeepSeek's innovations, and explore what makes it a key player in the AI world.

Ready? Let’s get started!

Understanding DeepSeek

As you may have heard, DeepSeek is the new kid on the AI block. Yet, it's not just trying to fit in; instead it is throwing a big party and everyone is invited!

It's a product of a Chinese AI company which attracted attention for developing AI models that are cheaper than the industry standard. Liang Wenfeng, co-founder of the hedge fund High-Flyer, started DeepSeek in July 2023 with the goal to make AI more accessible to everyone, and making advanced models cheaper and easier to use. The Chinese startup came out of nowhere and has now become the talk of the AI town.

So, why all the buzz? Well, DeepSeek's AI models are not just smart; they're also efficient and cost-effective (being open-source). According to Forbes, DeepSeek's R1 model was developed at a cost of just $5.6 million, significantly less than the estimated $100 million to $1 billion range needed to train OpenAI's GPT-4.

It's like getting a Ferrari for the price of a used car!

What was even more impressive was its incredible benchmarks when competing with other leading AI models. Take a look for yourself!

Naturally, the global AI community took notice. The rise of DeepSeek isn't a small event as the Chinese lab is taking on established giants and changing the way competition works with its open-source, cost-effective models.

So, what will DeepSeek do next? Well, for now the world is holding its breath as DeepSeek keeps pushing the limits of AI models. Will it keep going strong and keep shaking up the market? We won't know for sure until later, but DeepSeek is here to stay.

We will go into more detail about its AI models - but first, let's explore DeepSeek's origins! 

History Of DeepSeek

Picture a startup in a small garage near Hangzhou, China. Well, that's where DeepSeek's journey started!

Established in July 2023 by Liang Wenfeng, the visionary co-founder of the High-Flyer hedge fund, DeepSeek was born from the AI research initiatives of its parent company.

The Chinese hedge fund was already making waves with its data-driven trading tactics, but Liang, who is very interested in AI, decided to create a separate company that would focus on AI research and development.

That was the birt of DeepSeek, an Ai lab focused on long-term projects without the outside pressures that usually come with businesses backed by investors. DeepSeek's goal was to push the limits of AI, and it started by building its private data centers.

Being able to survive on their own was very important, especially when the U.S. issued export restrictions on GPUs. Yet, even though DeepSeek had to use Nvidia's H800 chips instead of the H100 chips that U.S. AI companies use, DeepSeek proved that it could succeed.

DeepSeek's rise was nothing short of meteoric. By November 2023, it had unveiled the first set of AI models, including DeepSeek Coder and DeepSeek Chat.

Although it wasn't until the DeepSeek-V2 models came out in the spring of 2024 that the startup really became popular. These models were not only successful, but also cheap, even making Chinese competitors like ByteDance and Alibaba rethink about their prices.

DeepSeek was already a well-known brand by the time its V3 and R1 models came out in May 2024 and January 2025, respectively.

So, what made these models a success? 

• Open-Source Philosophy: Unlike many competitors, DeepSeek embraced an open-source approach, allowing developers worldwide to contribute and improve their systems.

• Innovative Architecture: The "mixture-of-experts" approach meant that only a fraction of the model's parameters were activated for any given task, making it both efficient and cost-effective.

• Young And Dynamic Team: With a team of young and diverse professionals, DeepSeek could think outside the box and challenge conventional AI norms.

DeepSeek's rise from a small lab to a world leader shows how important it is to think outside the box. Who would have thought that a small group of people in Hangzhou could make the AI world stop and rethink?

You may be interested to know what DeepSeek's AI models are all about, right? Let's get on with that next, shall we?

Technological Innovations Of DeepSeek's AI Models

You may already know that with the release of the DeepSeek-R1 model in January 2025, DeepSeek became the global AI leader that it is today. However, their previously released models were also ground-breaking solutions, as listed in the table below:

Model Name	Release Date (Approx.)	Description
DeepSeek Coder	November 2023	DeepSeek's inaugural open-source model, focusing on code generation and understanding.
DeepSeek-LLM Series	November 2023	Introduced models with 7B and 67B parameters, available in both Base and Chat versions.
DeepSeek-MoE Models	January 2024	Released Base and Chat variants, each with 16B parameters (2.7B activated per token).
DeepSeek-Math	April 2024	A suite of models—Base, Instruct, and RL—designed to tackle complex mathematical reasoning tasks.
DeepSeek-V2 Series	May 2024	Featured models like DeepSeek-V2, DeepSeek-V2 Lite, and their Chat counterparts.
DeepSeek-Coder V2	June 2024	An enhanced version of the original DeepSeek Coder, offering improved code generation capabilities.
DeepSeek-V2.5	September 2024	An iteration combining features from DeepSeek-V2-Chat and DeepSeek-Coder-V2-Instruct, aiming for a more robust performance.
DeepSeek-V3	December 2024	Released both Base and Chat models, maintaining architectural consistency with V2 while introducing performance optimizations.
DeepSeek-R1	January 2025	A significant milestone, this open-source reasoning model matched the performance of leading counterparts like OpenAI's o1 in tasks involving math, code, and logical reasoning.
DeepSeek-R1-Zero	January 2025	A variant of DeepSeek-R1, trained exclusively through reinforcement learning without supervised fine-tuning, showcasing an alternative training methodology.
Distilled Models	January 2025	Derived from other pretrained open-weight models like LLaMA and Qwen, these models were fine-tuned on synthetic data generated by DeepSeek-R1, offering efficient alternatives for various applications.

DeepSeek’s rapid innovation and diverse range of AI models positioned it as a formidable force in the industry. However, technological progress by itself doesn't shake an industry; disruption does!

DeepSeek's open-source nature and lower development costs had a disruptive effect on the AI industry, especially on market leaders like OpenAI, Google DeepMind, and Meta.

Let's talk more about that next!

DeepSeek's Market Disruption

DeepSeek has been shaking up the AI market like a blockbuster movie with a twist no one saw coming. This Chinese AI powerhouse sent shockwaves through the tech world, causing a dramatic $560 billion drop in Nvidia's market value.

How did they do it? By releasing their R1 model for a lot less than U.S. prices, causing worries that the rising demand for Nvidia's high-end GPUs would drop - and that's exactly what happened.

Now, Nvidia wasn't the only company that felt the heat. As investors reevaluated how much AI was truly worth, technology giants like Broadcom, Google, Meta, and Microsoft also saw big drops in their stock prices.

This also made the adoption of DeepSeek's models faster than a viral TikTok dance trend!

Businesses started integrating its cost-effective and efficient AI solutions into a myriad of applications, from customer service chatbots to complex data analysis tools. The key appeal of DeepSeek was its open-source approach under the MIT license, allowing unrestricted commercial use.

This led to developers creating over 500 derivative models, and the app downloaded more than a few million times (as of today) across platforms like Hugging Face. It was like giving everyone a free backstage pass to the AI concert of the century!

Established AI firms are now facing a shift in competitive dynamics with DeepSeek's cheaper and more accessible models. Big Tech leaders like Meta and OpenAI are feeling the pressure to innovate and reduce costs. Even the U.S. government is keeping a close eye on DeepSeek's actions to counter foreign influence on the global AI landscape.

This unprecedented disruption has not only reshaped the AI market but also sparked urgent debates on ethical concerns, regulatory oversight, and the global power dynamics of open-source AI models.

So what does DeepSeek's rise mean for AI ethics and regulation? Let's discuss that next!

Ethical And Regulatory Considerations Of DeepSeek

A major concern with DeepSeek is its data security - or lack of. In its privacy policy, DeepSeek makes it clear that it stores user data in China. including IP addresses and keystrokes.

Now, because Chinese national security rules require companies to share data with government agencies, it has caused some panic. Imagine giving your diary to someone who might read it out loud in a public place.

Here is a list of DeepSeek's data privacy rules:

• Data Storage: User data stored in China, subject to Chinese laws.

• Security Threats: Potential for unauthorized government access.

• Privacy Concerns: Extensive data collection practices.

Another hot topic is content moderation as DeepSeek's AI models, especially R1, have been observed to dodge questions about politically sensitive topics in China. 

This raises questions about censorship and the spread of disinformation. Yet, the implications of such issues stretches far beyond DeepSeek. They touch on broader themes in AI ethics and regulations, as businesses race to ensure AI doesn't become a tool for surveillance or misinformation. 

While DeepSeek's technological advances are amazing, they also open up a lot of issues in terms of ethics, disinformation and regulation. The global AI community needs to discuss such challenges to make sure that advances in AI are in line with ethical and moral standards.

So, how will DeepSeek and other AI giants address these concerns moving forward? Let's take a peek into the future!

Future Prospects Of DeepSeek

With DeepSeek's current open-source R1 model, the company has set a new standard in AI interactions. This model allows itself to activate only a small number of parameters for any task when fine tuned, leading to high efficiency and cost-effectiveness that make other AI models seem like they're from the Stone Age.

As DeepSeek keeps innovating, it has both opportunities chances and problems. On one hand, its open-source approach is a gift to the AI community, fostering collaboration and innovation. On the other, it must navigate geopolitical challenges, especially with concerns about data security and potential government access.

DeepSeek's goals for the future include making it more efficient and scalable, using models that are specific to industries, and growing its open-source community.

Will it be able to do that? Only time will tell!

However, we're sure DeepSeek is set to change the way we interact with AI tools. To know more about DeepSeek, check out these pieces:

Here's How To Run DeepSeek-R1 Locally On Your Computer

DeepSeek-R1 Vs. OpenAI o3‑mini: Which AI Model Is Winning?
 

Explore more about AI here!

Wrapping It Up!

From its humble beginnings in a garage in Hangzhou to topping the download charts on the App Store, it's been quite a ride for DeepSeek.

Sure, it's had its share of drama - from cyber-attacks and data leaks to disruptive marketing and all that jazz. We're not complaining, who doesn't love a bit of suspense?

DeepSeek's open-source methods and low-cost models are making AI more interesting and accessible. DeepSeek is definitely a company you should keep an eye on, whether you're a fan of AI or just someone who found this story by accident.

What will DeepSeek come up with next? 

Stay updated for that with TechDogs!

Frequently Asked Questions

What Is DeepSeek?

DeepSeek is a tech company from China that makes smart computer programs. It started in 2023 and is known for its chatbot and other AI tools. The company wants to make AI easier for everyone to use.

How Does DeepSeek Compare To Other AI Models?

DeepSeek's models are known for being cheaper to make and run than others, like ChatGPT. They use new ways to learn and solve problems, which makes them work well without costing a lot.

Has DeepSeek Faced Any Challenges?

Yes, DeepSeek has had some problems, like cyberattacks and worries about how safe it is to use. They had to stop letting new people join for a while because of these attacks.