What Is Deepseek? A Deep Dive Into Its History & Impact

DeepSeek: The Free AI Challenger Taking on ChatGPT

When it comes to the world of artificial intelligence, there are many newcomers. But, no one has become famous so quickly as Deepseek. This Chinese startup company has released large language models (LLM) like Deepseek-V3 and Deepseek-R1.

With the release of the R1 model on January 20, Deepseek has turned the AI ​​world upside down. It has taken the top spot in the iPhone App Store and has been called the new power in AI. But what is so special about Deepseek? Why are so many people talking about it? Let’s take a look at each one.

What is DeepSeek?

DeepSeek was founded by Liang Wenfeng in May 2023. He is a well-known personality in both hedge funds and AI. He started this company with the idea that good quality AI should be available to everyone. That is why he is developing powerful and cost-effective LLMs.

In November 2023, he released a model called DeepSeek Coder. He said that it would help with programming work. Then, in May 2024, DeepSeek-V2 came out. It changed the AI ​​market in China with its very low price. Now, DeepSeek-V3 and DeepSeek-R1 have also come out, and DeepSeek has become a big player in the global AI race.

DeepSeek’s Key Innovations

Performance on a Budget

DeepSeek, which works well for large models like ChatGPT-4o, is very cheap. However, it has been developed in a new type of system called “Mixture-of-Experts – MoE.” Only some parts work at a time. Due to this, the computer cost is very low. Therefore, DeepSeek is not only efficient but also within our budget!

Self-Improving Models

DeepSeek’s models learn like us! They try, make mistakes, and learn from them. The feedback they receive keeps improving itself. Therefore, there is no need to update frequently. It will always be the latest!

Specialized Models

• DeepSeek-V3: An all-rounder model that can handle a wide range of tasks, from answering questions to writing stories.
• DeepSeek-R1: Designed specifically for reasoning tasks, such as complex calculations and research.

Why DeepSeek is Gaining Popularity

• Free to Use: While ChatGPT charges a monthly fee for advanced features, DeepSeek’s intelligent chatbot is completely free and high-quality AI! That’s why DeepSeek has become a super hit with those who need good AI technology!
• Efficiency: DeepSeek’s models use very little computing power. Therefore, it is low-cost and good for the environment.
• Ease of Access: You can use DeepSeek’s chatbot directly on the DeepSeek.com website or through the iOS or Android application. You can also log in with your Google account.

DeepSeek’s R1 Shakes Up the U.S. Stock Market

When DeepSeek’s R1 AI model arrived, the US stock market was in turmoil! All the big tech companies were stunned, and everyone seemed to be looking back to see who was the leader in AI worldwide. NVIDIA, a major company that makes chips for AI computers, was shocked by losing $600 billion in value in a single day! (Stocks fell by 16–18%). Investors are afraid that if AI comes at a lower cost like the R1, who will buy NVIDIA’s expensive chips? This fear has affected other companies as well.

The Nasdaq fell 3.1% and the S&P 500 fell 1.5%. Shares of large companies like Meta, Alphabet, Microsoft, and Oracle fell by more than 10%. Shares of power companies like Constellation Energy, which need to power AI data centers, have fallen by up to 21%. The turmoil has spread across the world, shaking stock markets in Europe and Asia. Chip makers like ASML and SoftBank have also seen big declines.

The main reason for this big change is DeepSeek’s R1. This model, which works like ChatGPT, was developed at a very low cost. While American companies spend billions on developing AI models, DeepSeek developed R1 for just $5.6–6 million. It uses “inference-time computing” technology, which reduces computer costs by executing only the neural pathways needed for each question. (This can be called “on-demand computing”).

They have also reduced costs by using open-source software. Thanks to this new technology, the R1 chatbot has taken the top spot on the Apple App Store in just a few days, sitting in the ChatGPT corner! This is a sign that a new direction is coming in AI.

The US has banned China from selling NVIDIA A100 and H800 chips. However, DeepSeek’s creator, Liang Wenfeng, violated that ban and bought the chips in advance and created the R1 model. This is a big challenge for the US. China is trying to become self-reliant in technology. This move is seen as a challenge to the policies of the US government. Famous investor Marc Andreessen compares this to the incident when Russia sent the Sputnik rocket into space in 1957 and warns that a big competition in AI, an AI arms race, is coming.

The success of R1 is a big shock to silicon companies that thought they could win in the AI ​​space without spending too much. R1, which excels at low cost, has called into question their multi-billion dollar investments. Shares of companies that supply power to AI infrastructure, such as GE Vernova and Vistra, have also fallen. Because, with models like R1, computers will need less power.

NVIDIA is bold enough to say that their chips are still needed. But no one knows what will happen in the long run. Some analysts say this stock market decline is an overreaction. They say that if AI comes at a low cost, the number of people using it will increase, so the demand for chips will not decrease. Others warn about the dangers of tech companies. Trump has called it a “wake-up call” for the US. But at the same time, he has eased restrictions on TikTok, which has ties to China. It’s a strange situation.

DeepSeek R1 has exposed the weaknesses of the US tech industry. It relies on expensive infrastructure and is dependent on foreign countries. Even as stock markets stabilize, this shift is crucial for creating innovative ideas and sound policies. As Intel’s Pat Gelsinger has said, if the cost of AI decreases, its use will increase worldwide. However, American and Western companies must develop new technologies and compete. The R1 story is not an ordinary event; it is a major turning point that will change the future of AI.

DeepSeek and ChatGPT: what are the main differences?

Core Development and Ownership

DeepSeek was created by DeepSeek Inc., a Chinese company. They focus on AI solutions for business and personal use. Their goal is to provide high-quality technology at a low cost.

OpenAI, an American company, created ChatGPT. They are a pioneer in creating AI models such as GPT-3.5 and GPT-4. They focus on tasks that generate new ideas and speech.

Technical Architecture and Training

DeepSeek is designed to suit certain fields. For example, fields like finance and medicine. It works well in Asian languages, including Chinese. But ChatGPT, trained on data from all over the world, can do a variety of tasks in English and other languages. It is also good at writing stories and poems. It can also think in new ways.

Target Audience and Use Cases

DeepSeek is designed for businesses in Asian countries. It can do a lot of work like Data Analysis, Customer Service. Anyone can use ChatGPT. It can help with many things like writing articles (Content Creation), computer programs (Programming), education, and personal work (Personal Productivity).

Ethical and Regional Compliance

DeepSeek operates under Chinese laws. It places great importance on data protection. ChatGPT follows global protocols. It is careful about user information security and correct content.

Integration and Ecosystem

DeepSeek works with popular platforms in Asian countries, such as WeChat and Alibaba Cloud. ChatGPT works with global platforms such as Microsoft and Slack. It also works with many other software (Third-party integrations & APIs).

DeepSeek search and ChatGPT search: what are the main differences?

There are many search engines on the Internet today. DeepSeek and ChatGPT search are both very popular. However, they both work a little differently. To find out which one is right for you, you can compare both here.

Core Function and Integration

DeepSeek is like the Google we are all familiar with. When you type in your search, it will show you links to related websites, a small summary, or only important information. DeepSeek is good at providing fast and accurate information.

ChatGPT search (similar to Browse with Bing) is a little different. In this, it collects information from many websites and writes an article that makes it easy to understand. It also answers your questions and provides relevant information.

Technology and AI Models

DeepSeek uses technology that they developed in accordance with the data regulations in China. They focus on providing fast and accurate information.

ChatGPT search uses OpenAI’s GPT models (GPT-4 model). These models understand our language well and provide relevant information. They can also help you make changes to the questions and search for new ones.

Presentation of Results

DeepSeek shows results like the Google we are all familiar with. Links to related web pages will appear as small summaries. It also uses AI to show important information.

ChatGPT search does not show any links, but instead collects information from many websites and displays results that are easy to understand, like an article. It is not known from which websites the information was taken.

Monetization Approach

Deepseek makes money through advertisements, like our familiar search engines. However, ChatGPT search is a part of ChatGPT. Revenue comes from subscriptions, like ChatGPT Plus. They focus on providing a good user experience without advertisements.

User Interaction Style

Deepseek provides the necessary information quickly and directly. It is convenient for us to search and browse the search results ourselves. ChatGPT search is a little different. We can ask our questions and listen to relevant information. They make a lot of information available in a single conversation.

Summary of Key Differences

Deep search focuses on providing the information needed in a specific location, like traditional search engines. ChatGPT Search uses innovative AI technology to provide a conversational search experience. Although both work in different ways, they focus on providing users with the information they need.

How to switch to DeepSeek from ChatGPT

How to switch from ChatGPT to DeepSeek? If you follow this simple guide, you can easily switch.

Step 1: See if DeepSeek is right for you

First, check if the features of DeepSeek suit your needs. Compare what features are available in ChatGPT and what features are available in DeepSeek. For example, if you need to work a lot or if the data rules in your country work, see how DeepSeek works. Check how DeepSeek works for tasks like coding, writing articles, and data analysis.

Step 2: Preparations for switching

Take all the important data, chat history, and prompts that you have saved in ChatGPT. To understand how DeepSeek works, take a look at its interface and documentation. Developers and business owners should thoroughly test all APIs, bots, and automated workflows in ChatGPT. To avoid data loss, back up all custom-trained models and datasets in ChatGPT.

Step 3: Change technical work

If you need to change the API, change the ChatGPT endpoints in your code to DeepSeek endpoints. Change parameters like temperature, token limits, and system prompts to match DeepSeek. For example, if temperature=0.7 is used in ChatGPT, you will get creative output. Check if the same output is used in DeepSeek. Update all authentication methods (API keys, OAuth tokens) to match DeepSeek’s security protocols.

Step 4: Adapt Prompts and Content

First, we need to modify the prompts used for ChatGPT to suit DeepSeek. If some prompts have a specific format, we need to modify it so that DeepSeek can understand it. We need to use the features that DeepSeek has to offer and make it look like we get good answers. For example, if we ask, “Summarize this research paper and find what’s wrong with it,” we can use the features that DeepSeek has to offer to get even better answers.

Step 5: Validate and Optimize Performance

We need to ask the same question to ChatGPT and DeepSeek and see which one is faster and gives the correct answer. We need to calculate the API latency, errors, and costs to find out which one works better. We need to ask our users (customers, team members, or anyone else) for feedback and see what we can do to improve it. For example, if DeepSeek’s answer is too brief and lacking in depth, ask “Please explain in detail” in the question.

Step 6: Security and Compliance

Our data needs to be secure, that’s important. In particular, we need to be very careful when using sensitive information. We need to make sure we’re compliant with laws like GDPR or China Cybersecurity Law. We need to make sure who has what rights and make sure all account details are correct. In industries like Healthcare or Finance, we need to make sure that all the data DeepSeek uses is compliant with the laws for that industry.

Step 7: Use Help and Resources

If you have any problems with DeepSeek, read the documentation provided. Join the user community or forums to learn good practices. If you have any problems, contact customer support. For developers, there are many tutorials or SDKs (software development kits) that can help you get started.

Example Workflow for a Business Team

• Audit: First, find out where we are using ChatGPT in our company. For example, what tasks are we using it for, such as a customer service bot or a report generator?
• Pilot test: First, switch just one task, such as a FAQ chatbot, to DeepSeek and see how it works for a week.
• Adjust: Ask for feedback from users and change the questions accordingly. For example, change the way the answers are more conversational or technical.
• Scale : Next, we need to gradually migrate the remaining tasks to DeepSeek. But until the test run is complete, we need to keep ChatGPT as a backup.
• Train: We need to teach our company’s employees how to use DeepSeek. Only then will their work be trouble-free.

Key Considerations

• Cost Analysis: We need to look at the cost of DeepSeek, the cost of API, and the cost of computers and see if this will be affordable for our company.
• Backup plan: If there is a sudden problem with DeepSeek, we need to switch to ChatGPT immediately.
• Customization: We need to see if we can train models using our data in DeepSeek. Only then will it be suitable for our work.

If we plan this model properly and switch to DeepSeek, we can use the good things in it to suit our work.

History Of Deepseek

It is a Chinese AI company founded by Liang Wenfeng in May 2023(Article about Liang Wenfeng) . It has become famous for creating innovations in AI globally. Liang started an investment company called High-Flyer in 2015. It is growing with the help of that company’s money. It wants to do good research and improve AI through open-source software rather than looking for quick money. Now, let’s take a look at their history, innovations, and influence.

Beginnings and ambitions

Liang Wenfeng is a big businessman. But not many people know about him. He used the $8 billion in assets from High-Flyer and 10,000 NVIDIA A100 chips that he had bought before the US embargo on DeepSeek. Some thought that China would follow the US in AI. But Liang decided to change that mindset. “The difference between China and the United States is that America creates something new, and China copies it. We need to change this situation,” Liang said. DeepSeek decided to create something new rather than copy it. It has started to focus on new research rather than making quick money like other Chinese tech companies.

Key Milestones and Innovations

Early models (2023–2024)

• DeepSeek-Coder (November 2023): A free model (open-source) for coding on computers. They have trained on 2 trillion tokens (think of them as words). Many people started talking about it because it works well at a low cost.
• DeepSeek-V2 (May 2024): A “Mixture-of-Experts” (MoE) model. Many small models work together to work as a large model. The cost of answering is very low. It is only $0.14 per million tokens. This has led to a price war in the AI ​​market in China. Big companies like ByteDance and Alibaba have had to lower prices.

Breakthrough Models (2024–2025)

• DeepSeek-V3 (December 2024): A model that works well for mathematical and reasoning tasks, similar to Anthropic’s Claude-3.5. It has 671 billion parameters (parameters – the size of the model).
• DeepSeek-R1 (January 2025): A model specifically designed to develop reasoning skills. It was developed for just $5.6–6 million. It was fully trained using “reinforcement learning”. After its release, NVIDIA shares fell by 16–18%, losing $600 billion in value. Investors began to wonder if expensive computer clusters (GPU clusters) were no longer needed.

Technical Innovations

• MLA (Multi-Head Latent Attention): A technology that greatly reduces the memory usage of computers and makes them work faster. Only 5–13% of the memory is needed compared to the old method.
• DeepSeekMoESparse: A technology that reduces computer costs by up to 42.5% by doing only important tasks and not doing unnecessary tasks.
• Reinforcement Learning: Unlike American companies, where teachers teach, the AI ​​model learns by making mistakes.

Seeing these innovations, Silicon Valley experts have called the DeepSeek team “a bunch of incomprehensible smart people”!

Market and Geopolitical Impact

• Price war: When DeepSeek’s low-cost models came out, all Chinese tech companies had to lower prices. While other companies sold at a loss, DeepSeek sold at a profit.
• Global shock: The performance of the R1 model was a big blow to American AI companies. Companies like Meta are trying to understand DeepSeek’s technology by setting up special teams.
• Political significance: The release of the R1 was an important event when Trump took office as president in 2025. It shows that China could achieve self-reliance in technology. Even though the US had banned the chip, DeepSeek had used NVIDIA chips that it had previously purchased to create the R1. This shows a loophole in the US ban.

Founder Liang’s philosophy and challenges

Liang Wenfeng studied AI at Zhejiang University. He encourages the desire to discover something new at DeepSeek. All the engineers working at DeepSeek (mostly young graduates from Chinese universities) use the computer facilities freely without any major barriers. There is no hierarchy, and everyone works the same way (flat hierarchy). However, there are still some challenges:

• Compute Gap: It is unable to get good chips due to the US embargo. This hinders its development. It cannot grow on a large scale (scalability).
• Censorship: DeepSeek’s models do not criticize the Chinese government. This makes it difficult for it to become popular on a global scale.
• Market Skepticism: Some experts are skeptical that it will handle sensitive information. Oxford researchers warn against sharing sensitive information in it chatbots, saying that data privacy could be a problem.

Future Outlook

DeepSeek is working to create “general AI” (artificial general intelligence – AGI). At the same time, it is not going to change its policy of providing free software (open-source). Liang wants other companies to build their software on It models, like NVIDIA computer chips. He hopes to create a kind of “ecosystem”. Ithas begun to make a global impact, using chips from AMD and participating in projects like Hugging Face’s “Open R1” (a project that reworks DeepSeek’s model).

It’s development is a turning point for the AI ​​industry. It has proven that it is possible to succeed through innovative technology without spending a lot of money. As Liang said, “Chinese AI can never be a copycat.” It’s journey shows that China, which has copied technology, is now a China that is creating something new. This will be a big change in the global AI industry.

How to use DeepSeek-R1 for deeper reasoning

Let’s see how to do deep analysis with our advanced tool, DeepSeek-R1. If you ask the right questions and think step by step, you can get more detailed answers.

1. Clear purpose

First, you need to define exactly what the problem is. You need to clearly state what we need, what constraints we have, and what kind of answer we want. For example, instead of asking, “How can we improve education?” ask, “Notice that rural secondary schools lack technological facilities and teachers need training, and create a plan to add AI tools there.” When you ask like this, AI will think in the right direction and give us the answer we need.

2. Break down complex problems into parts

Break down large problems into smaller parts. For example, if you want to analyze a conflict in a country, first ask DeepSeek-R1 to tell you about the important events that happened in that country. Then, ask who was involved in the conflict and what effects it had. Finally, ask how the problem can be solved. If you say, “Research each cause properly,” the AI ​​will think step-by-step like a human and answer.

3. Considering hypothetical situations

Imagine a new situation, such as asking the AI, “If we completely switch to renewable energy sources by 2040, how will world trade change?” This will make the AI ​​think in new ways. It will help it predict what changes will happen in the future and understand how different things are related to each other. If you do this, the AI ​​will think very intelligently and give a good answer.

4. Providing contextual information

You need to provide the AI ​​with the necessary information to get the right answer. For example, if you want to analyze a health plan, you need to provide statistics on population and medical facilities. You can ask, “Using the data on the number of people vaccinated in X region, see if it is possible to achieve immunity by 2025. Tell me what can be done to achieve that.” If you provide this kind of information, AI will help you make the right decisions.

5. Continued conversation

Imagine a conversation with AI. After getting the first answer, you can ask, “You said that the financial situation will be stable. If the budget is cut by 20%, how will this plan be affected?” By asking questions like this, hidden ideas will come to light. You can make the right decisions.

6. Special methods

If DeepSeek-R1 has separate methods for different fields like technology, law, science, etc., use them. For tasks related to computer languages, if you say, “Fix the errors in this Python script using memory optimization procedures,” the AI ​​will give good solutions.

7. Validation of results

Compare the results the AI ​​gives with reliable sources. For important tasks, ask how reliable the AI ​​itself is. You can ask, “Tell me which parts of your research are based on controversial data. Tell me what are the ways to remove those doubts.”

Example Application

Let’s say we want to make a plan for what to do if an earthquake hits a coastal city. In this post, we will look at some of the important things in it.

• Scope Definition : In this plan, we will mainly consider how to inform people quickly and how they can get to safe places (evacuation routes).
• Stepwise Analysis : First, we need to look at what are the shortcomings in the information and communication facilities in our city. Then, we need to think about how we can fix them using technology. For example, there is a way to know in advance that an earthquake is coming through a computer (AI-powered early warnings – that is, giving warnings through modern technology).
• Scenario Testing : If we get a warning that a tsunami is coming right after an earthquake, what changes should we make to our plan?
• Iteration : If we get 30% more money for our plan, how can we make it even better?

Concerns and Challenges

It is a Chinese startup that has revolutionized the tech world by providing good AI models at low cost and free (open-source). However, despite its rapid growth, It has to face some important problems. There are challenges in everything from computers, politics, markets, and management.

Computer and hardware limitations

It has to face restrictions from the US. They cannot buy new-generation chips. They have to use old NVIDIA chips (H800, A100). Although they use new technologies (multi-head latent attention, Mixture-of-Experts) in software and reduce computer costs, they cannot create large models (scale) like American companies like OpenAI. This chip shortage could become a big problem for DeepSeek in the long run.

Geopolitical and Censorship Challenges

DeepSeek’s models are subject to censorship by the Chinese government. There should be no criticism of the Chinese Communist Party. This makes it difficult to use it’s models globally. These models are not valid in countries that believe in free expression. Western countries are also skeptical of DeepSeek. Countries like Australia are calling for stricter restrictions on foreign AI companies like DeepSeek.

Market Perception and Trust Barriers

It is a new company. They do not have the market trust that companies like OpenAI and Google have. Some people are skeptical that it can create good AI models at the low cost that they claim. Since Freya provides open-source models, they are afraid that others will copy their technology.

Sustainability of Innovation

The reason for DeepSeek’s success is its innovative algorithm. However, companies like OpenAI are rapidly developing new models (o3 mini). It needs to keep inventing new technologies. At the same time, it also needs to protect the principle that Free provides (open-source).

Operational and Security Risks

As it became popular, hackers started showing up online. It wasn’t easy to open a new user account. Building a secure infrastructure is a big challenge. You have to keep costs under control and provide services to all users. It’s parent company, High-Flyer, has faced a lot of legal problems in China. This could become a headache for DeepSeek in the future.

Commercialization and Competitive Pressures

It is focused on research. It is not so focused on business. Even if they offer an API at a low price, it is not known how they are going to make a profit. (Profitability is uncertain). Big companies like ByteDance and Alibaba are competing at very low prices. This will make it difficult for DeepSeek.

Data Privacy Concerns

Security experts are wary of the Chinese company DeepSeek. They are afraid that the same thing will happen to DeepSeek, just like the controversy over TikTok’s data going to the Chinese government. They may consider giving important information to it.

Service Outages

Hacker attacks have stopped DeepSeek’s service. It has temporarily banned new users from joining. It is normal for a new company to face such problems when it grows rapidly.

The future of DeepSeek

DeepSeek currently does not have video and photo creation features like ChatGPT. But they are developing at a fast pace. Innovative technology, low cost, and advancements mean DeepSeek will continue to be a major player in the AI ​​space.

Frequently Asked Questions