DeepSeek AI Review: From DeepSeek Definition to the AI Technology It Brings

DeepSeek AI, a rapidly emerging Chinese AI startup, has made waves in the AI industry with its innovative approach.

Launched in July 2023, the company specializes in creating open-source large language models (LLMs) and has quickly gained attention.

With a focus on cost-efficiency and high performance, DeepSeek brings advanced AI technology, all while keeping expenses low.

This DeepSeek AI review explores the company’s journey, unique technology, and what sets it apart from other industry leaders.

Key Takeaways

1. DeepSeek’s R1 model is one of the largest open-source LLMs, with 670 billion parameters, offering impressive capabilities in coding, math, and reasoning.

2. The company operates on a minimal budget of $6 million, significantly lower than competitors like OpenAI, making it a cost-effective AI solution.

3. DeepSeek promotes open-source accessibility, allowing users to freely download and run the AI models, while ensuring user data privacy.

What is DeepSeek?

DeepSeek, founded in July 2023 in Hangzhou, is a Chinese AI startup focused on developing open-source large language models (LLMs).

Its AI-powered chatbot became the most downloaded free app on the US Apple App Store.

DeepSeek’s R1 model, with 670 billion parameters, is the largest open-source LLM, offering performance similar to OpenAI’s ChatGPT in areas like coding and reasoning.

Despite censorship challenges, DeepSeek’s model avoids sensitive topics and operates on a modest $6 million budget, significantly cheaper than US competitors. The company leveraged a stockpile of Nvidia A100 chips, combined with less expensive hardware, to build this powerful AI.

History of DeepSeek

The origins of DeepSeek can be traced back to Liang’s High-Flyer, a quantitative hedge fund established in 2016, which initially focused on AI-driven trading algorithms.

The transition from High-Flyer to DeepSeek represented a strategic shift toward creating foundational AI models to achieve artificial general intelligence (AGI).

In early 2023, Liang redirected resources from High-Flyer to establish DeepSeek and began developing cutting-edge AI models.

Instead of hiring experienced industry professionals, the company recruited recent PhD graduates from top Chinese universities, cultivating a collaborative, research-driven culture. This approach has been credited with fostering innovation and creativity within the organization.

DeepSeek quickly gained traction with the release of its first LLM in late 2023. The company’s subsequent models, including DeepSeek R1, have been reported to outperform competitors like OpenAI’s ChatGPT in key benchmarks while maintaining a more affordable cost structure.

The company’s progress has stirred both excitement and concern within the tech industry, particularly as it has led to significant stock price declines for companies like Nvidia.

Key Features in DeepSeek

Mixture-of-Experts (MoE) Architecture

DeepSeek employs a Mixture-of-Experts system, activating only a subset of its 671 billion parameters (approximately 37 billion) for each task.

This selective activation enhances efficiency and reduces computational costs while maintaining high performance across various applications.

Long Context Handling

The model supports an impressive context length of up to 128,000 tokens, allowing it to process extensive information effectively.

This capability is particularly beneficial for complex tasks such as coding, data analysis, and problem-solving, where maintaining coherence over large datasets is crucial.

Advanced Natural Language Processing

DeepSeek excels in natural language understanding and generation, making it suitable for tasks like technical documentation, multi-language support, and context-aware responses. Its ability to comprehend nuanced queries enhances user interaction.

Enhanced Code Generation and Analysis

DeepSeek offers sophisticated coding capabilities, including automated code reviews, debugging assistance, and performance optimization suggestions. This makes it a valuable tool for software developers seeking efficient solutions.

Cost Efficiency

The API pricing is competitive, with costs around $0.14 per million input tokens and $0.28 per million output tokens.

This affordability makes DeepSeek accessible to a wide range of users, from startups to large enterprises.

Open-Source Accessibility

DeepSeek is open-source, promoting widespread use and integration into various applications without the heavy infrastructure costs associated with proprietary models.

Multi-Head Latent Attention (MLA)

This mechanism allows DeepSeek to efficiently process multiple aspects of input data simultaneously, improving its ability to identify relationships and nuances within complex queries.

Performance Metrics

DeepSeek has demonstrated high performance on various benchmarks, scoring well on coding challenges (73.78% on HumanEval) and problem-solving tasks (84.1% on GSM8K), showcasing its capabilities in real-world applications.

Applications Across Domains

DeepSeek’s versatility extends to multiple domains including education, business automation, and software development, making it suitable for a variety of use cases from personalized learning to complex data analysis.

These features collectively position DeepSeek as a powerful tool in the AI landscape, capable of meeting diverse user needs while maintaining efficiency and cost-effectiveness.

DeepSeek’s Outstanding Features That Are Not Available in Other AI Models

DeepSeek, a newly developed AI model from China, is gaining attention for its unique features that set it apart from established competitors like OpenAI’s ChatGPT and Google’s Gemini. Here are some of the standout characteristics of DeepSeek:

Open-Source Accessibility

DeepSeek is released under an MIT license, allowing users to download, deploy, and customize the model freely.

This contrasts with many competitors that operate as closed systems, limiting user access to their underlying algorithms and training data.

Cost Efficiency

The development of DeepSeek’s R1 model reportedly required only about $6 million in resources, significantly less than the hundreds of millions often spent by U.S. tech giants.

This cost-effective approach enables DeepSeek to offer high-performance AI capabilities at a fraction of the cost of its competitors.

Advanced Reasoning Capabilities

DeepSeek’s architecture allows it to articulate its reasoning process before providing answers, akin to human thought processes.

This feature enhances its performance in logical reasoning tasks and technical problem-solving compared to other models.

Unlimited Free Usage

Unlike many AI models that require subscription fees for advanced features, DeepSeek offers unlimited free access to its functionalities, making it highly attractive for users seeking robust AI tools without financial barriers.

Technical Proficiency

Early tests indicate that DeepSeek excels in technical tasks such as coding and mathematical reasoning.

Users have reported faster and more accurate responses in these areas compared to ChatGPT, particularly in programming-related queries.

Privacy and Data Control

By allowing users to run the model locally, DeepSeek ensures that user data remains private and secure.

This contrasts with cloud-based models where data is often processed on external servers, raising privacy concerns.

Various Products from DeepSeek AI

DeepSeek-V3

Performance: DeepSeek-V3 has achieved notable breakthroughs in inference speed, outperforming several established models. It ranks highly on major AI leaderboards, including AlignBench and MT-Bench, competing closely with models like GPT-4 and LLaMA3-70B.

Capabilities: This model specializes in technical tasks such as mathematics, coding, and reasoning, making it particularly appealing for users requiring robust analytical capabilities.

DeepSeek-R1

Launch: The DeepSeek-R1 model was released in January 2025 and is characterized as an open-source reasoning model that emphasizes user privacy by allowing local operation.

Cost Efficiency: Access to the DeepSeek-R1 API starts at $0.14 per million tokens, significantly cheaper than competitors like OpenAI’s ChatGPT, which charges around $7.50 per million tokens.

User Experience

Accessibility: The DeepSeek app is available for free on Apple’s App Store and through its website. Despite some initial registration issues due to high demand and cyberattacks, it has quickly gained popularity among users.

Open Source: DeepSeek promotes an open-source approach, allowing users to download the model and run it independently, which contrasts with the more restrictive access models of some competitors

Advantages and Disadvantages of DeepSeek AI

DeepSeek AI has emerged as a significant player in the artificial intelligence landscape, particularly in the context of its competition with established models like OpenAI’s ChatGPT. 

Below are the key advantages and disadvantages of this AI tool.

Advantages

Cost-Effectiveness: DeepSeek is highly affordable compared to its competitors, with training costs estimated to be ten times lower than that of GPT-4. This makes it accessible for smaller businesses and individual users who may find other models prohibitively expensive.

Advanced Architecture: Utilizing a Mixture of Experts (MoE) architecture allows DeepSeek to activate only the necessary parameters for specific tasks, enhancing efficiency and reducing computational overhead. This results in better performance on various benchmarks, including coding and mathematical challenges.

High Performance on Benchmarks: DeepSeek has demonstrated impressive results on AI leaderboards, outperforming some established models in specific tasks like coding and math problems. For instance, it scored 90% accuracy on the MATH-500 dataset, showcasing its strong reasoning capabilities.

Versatile Applications: The platform supports a wide range of applications, from coding assistance to content creation and educational purposes. Its ability to generate high-quality content quickly makes it useful for writers and marketers.

Transparency in Reasoning: Unlike many traditional AI models that operate as “black boxes,” DeepSeek emphasizes transparency by breaking down tasks into smaller logical steps, which aids in debugging and compliance audits.

Disadvantages

Technical Expertise Required: DeepSeek is best suited for users with advanced knowledge of AI and computational technologies. Its complexity may pose challenges for less experienced users.

Internet Dependency: The tool requires a stable internet connection to function effectively, limiting its usability in offline scenarios.

Limited Language Support: Currently, DeepSeek primarily supports English and Chinese, which may not meet the needs of a global audience seeking diverse language capabilities.

Compute Resource Demands: Despite its cost-effectiveness, DeepSeek demands significant computational power, which could be a barrier for smaller organizations lacking robust infrastructure.

Response Time Variability: While generally fast, DeepSeek’s response times can lag behind competitors like GPT-4 or Claude 3.5 when handling complex tasks or high user demand.

While DeepSeek AI presents numerous advantages such as affordability, advanced architecture, and versatility across applications, it also faces challenges including the need for technical expertise and significant computational resources.

Final Note

DeepSeek AI has become a standout player in the competitive AI market with its advanced, open-source large language models.

By focusing on efficiency, cost-effectiveness, and versatility, DeepSeek has established itself as a viable alternative to established players like OpenAI.

Its innovative architecture, including the Mixture-of-Experts system, enhances performance while reducing computational costs.

The company’s focus on open-source accessibility and privacy gives users more control over their AI applications.

As DeepSeek continues to evolve, its impact on AI development and the industry at large is undeniable, offering powerful tools for businesses, developers, and individuals alike.

Disclaimer: DeepSeek AI has not released a cryptocurrency token or has been officially associated with any blockchain-based token or cryptocurrency project. Any claims or promotions suggesting otherwise are not endorsed by DeepSeek AI or its creators. Investors and users are advised to conduct thorough research and exercise caution to avoid misinformation or potential scams.

FAQ

What is DeepSeek AI?

DeepSeek AI is a Chinese startup developing open-source large language models, with its R1 model being one of the most advanced and cost-effective in the market.

How does DeepSeek compare to other AI models like OpenAI’s ChatGPT?

DeepSeek’s models are more affordable, with better performance in coding and reasoning tasks, and it operates with a Mixture-of-Experts architecture to enhance efficiency.

Is DeepSeek free to use?

Yes, DeepSeek offers its models under an open-source license, allowing users to download and deploy them for free while maintaining data privacy.