DeepSeek: The AI Revolution Challenging OpenAI
There’s a new contender in the Artificial Intelligence market, Deepseek. This AI model from China has garnered significant attention in the tech community, outperforming ChatGPT, Gemini, and Claude AI.
The DeepSeek application, which was launched last week, has outpaced competitors like ChatGPT to become the most downloaded free app in the United States. Shares of US-based technology firms involved in AI, such as Nvidia, Microsoft, and Meta, saw declines on Monday prior to the opening of US markets, according to reports from BBC.

What is Deepseek, China’s revolutionary advancement in AI?: Explained in 10 points
– DeepSeek is an AI research laboratory located in Hangzhou, and its most recent AI model is called R1. The company was established in 2023 by Liang Wenfeng, an engineer and entrepreneur specializing in AI and quantitative finance, as reported by India Today.
– Prior to founding DeepSeek, Liang led a hedge fund recognized for leveraging AI to analyze financial data. His team at DeepSeek primarily comprises recent graduates from prestigious Chinese institutions like Tsinghua and Peking University.
– The company has created open-source AI models that assist developers around the globe in enhancing their technologies. It is driven by the open-source DeepSeek-V3 model, which, according to its developers, was created for less than $6 million (£7.5 million) — a fraction of the billions spent by competitors.
– As an advanced open-source AI system, DeepSeek has outshone OpenAI’s ChatGPT to become the top-rated free application on Apple’s App Store in various nations, including the US, the UK, and China.
Its rise has made significant waves in Silicon Valley, challenging the notion that the US maintains a dominant edge in this sector.
– DeepSeek’s latest model, R1, competes with industry frontrunners like OpenAI and Anthropic but distinguishes itself through its cost-effectiveness, open-source nature, and provision of unlimited free access. According to NDTV, it offers high-performance AI usage without the hefty expenses typically associated with such technologies.
– The feature that sets DeepSeek R1 apart from its counterparts is its ability to articulate its reasoning before responding to a prompt, which is said to replicate human thought processes. The firm asserts that its performance is comparable to OpenAI’s most recent offerings.
– DeepSeek’s AI models are produced at a fraction of the expense relative to leading offerings from OpenAI and Meta, prompting inquiries about the necessity for substantial investments in top-tier AI accelerators like those made by Nvidia.
– A primary factor behind DeepSeek’s ability to generate excitement is its free accessibility to end users. Essentially, this marks the first highly advanced AI system that is available at no cost to consumers.
In contrast, other systems such as OpenAI’s o1 and Claude Sonnet require a subscription fee. Google Gemini is also free, but its free version is limited to earlier models and imposes usage restrictions.
– A central reason fueling the excitement around DeepSeek is that this Chinese AI assistant is praised for its transparency, efficiency, and capability to make AI accessible to everyone. DeepSeek’s emergence occurs at a time when the US has imposed limitations on advanced semiconductor exports to China in an effort to curtail China’s advancements in AI.
DeepSeek has succeeded in circumventing these barriers by developing models that demand fewer resources.
– The ascent of DeepSeek has had an immediate impact on stock markets. Shares of major US AI-related companies, including Nvidia, Meta, and Microsoft, fell in light of DeepSeek’s achievements. Analysts have cautioned that the rise of affordable Chinese alternatives to established US AI models could disrupt the investment landscape, compelling companies to reevaluate their strategies.
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