2025 Jan was buzzing with the word DeepSeek. It has sent shock waves in the Silicon Valley and was one of the crucial reasons for the fall of US stock market by pulling down AI tech stocks like Microsoft, Google, Nvidia etc. As the industry is still processing and understanding the nuances of DeepSeek, it can be said that it has certainly challenged the world order of the AI sector. It has also caught the attention of US President Mr. Donald Trump, who has warned US about the competition in AI industry. Let’s try to understand DeepSeek
What is DeepSeek?
DeepSeek is an AI assistant that functions similar to Open AI- ChatGPT. DeepSeek was founded in December 2023 by Liang Wenfeng, and according to a Reuters report, HighFlyer owns patents related to chip clusters that are used for training AI models. The stand out feature of DeepSeek is their open source with open weights, which allows everybody to build using that. It is powerful and it is free. There are various models in DeepSeek and the 3 versions are DeepSeek V3, DeepSeek V2.5 and the latest one is DeepSeek LLM (Large Language Model) R1.
One of the biggest breakthroughs of DeepSeek is their mixed precision framework, which uses 32-bit floating point and 8-bit floating point. The 8-bit floating point uses less memory and is faster to process but can be less accurate at times. The 32-bit floating point is used only for crucial key calculations, where accuracy is vital. Instead of relying on one floating point, DeepSeek has 2 of these floating points, which uses a technique called inference time computing scaling. This lets the model adjust its efforts depending on the task. This in turn saves memory, money and time. AI model training requires a lot of resource, but according to their research paper, this Chinese AI company has trained only the necessary parts with a technique called Auxiliary-Loss-Free Load Balancing.
But why has DeepSeek become the disruptor in the industry?
That is simply because they were able to achieve it at much lower cost than ChatGPT. DeepSeek-V3 has been trained on a meagre $5 million, which is a fraction of the hundreds of millions pumped in by OpenAI, Meta, Google, etc., into their models.
DeepSeek AI Vs ChatGPT
Here are some of the basic differences between DeepSeek and ChatGPT
- DeepSeek focuses on deep search, in-depth analysis where as ChatGPT focuses on content generation and problem solving, this is more conversational.
- The core technology of DeepSeek is the deep learning models specialized for data processing, whereas ChatGPT has generative pre-trained transformers for Natural language processing.
- DeepSeek has data centric deals with documents or datasets from the users for processing but ChatGPT is a conversational back and forth type of collaboration with users in natural language processing.
- DeepSeek depends on data retrieval and has restricted interactions, ChatGPT is very flexible.
How is DeepSeek leading the pack?
- Cutting-edge Performance : DeepSeek architecture has the up-to date deep learning techniques that ensures high efficiency in natural language processing (NLP), code generation, and multimodal AI tasks.
- Open Source : DeepSeek’s strength is from its open-source nature. In contrast, several models restrict the usage and charge for usage but DeepSeek allows researchers and developers to freely use the model and customize it for their needs and build on it. That promotes faster improvement and increased transparency.
- Customization & Fine-Tuning : Closed AI systems have a limited scope for fine-tuning but DeepSeek enables extensive fine-tuning. An organization can train the model on an industry-specific dataset to improve the application of the model for a particular niche. This makes it the right model for industries of finance, healthcare, legal tech, and other fields where domain knowledge is crucial.
- Cost-Effectiveness and Scalability : DeepSeek is a cost-effective alternative to exclusive AI models. As it is open source, companies can use the model in their infrastructures, reducing dependency on costly third-party Application Programming Interfaces. This makes AI adoption easily available on a larger scale and it is the most economical option for new start-ups and established companies.
- Enhancing AI Development with DeepSeek Coder : DeepSeek Coder helps by assisting with code generation, debugging and optimizing code. It is speeding up and streamlining the software development process. Due to the complex nature of Software development, tools like DeepSeek play a crucial for tech advancements.
Future of DeepSeek
It may be too soon to predict the future of DeepSeek but its models look very promising. Despite its challenges like the high computational cost and concerns over data privacy, it has the potential to grow with varied applications across industries like healthcare, research, entertainment and more.
Nevertheless, it will be exciting to watch DeepSeek grow and reshape the AI industry. There is still a long way to go!
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