What is DeepSeek AI? Unlock the Future of AI Technology

What is DeepSeek AI?

DeepSeek AI created a lot of buzz around the world on Monday with a broader market effect that sent NVIDIA stocks plummeting 17%. But what is DeepSeek AI and what does it mean for the AI market as a whole? This is exactly what we are going to uncover in this blog. DeepSeek is an AI development company which was founded in 2023 in Hangzhou, China and they also released their first AI large language model or LLM later that year. For a long time LLMs like OpenAI’s ChatGPT and Google’s Gemini have dominated the market with results that have been unmatched by any of their competitors especially with OpenAI which has been constantly releasing updates to their AI model.

DeepSeek AI made a lot of headlines in this space because it reportedly achieved this without spending as much money as their competitors and still being able to perform on par with OpenAI’s o1 model which. According to a paper they published last month the researchers from DeepSeek stated that they built and trained the AI model for under 6 million dollars within 2 months. The other interesting fact is that the company reportedly achieved this by using NVIDIA’s H800 chips which have lower transfer rates and slowed down speeds as compared to the H100 chips that many AI companies in the US use. DeepSeek AI has achieved this at a time when even the CEO of the US based AI startup Anthropic has said that it takes 100 million dollars to train AI and that some advanced AI models even take nearly 1 billion dollars to change.

Part of the discussion is the future of AI in the US given that President Trump recently announced a 500 billion dollar investment into the US over 4 years to build data centers and AI infrastructure partnering with giants like OpenAI, Oracle and Softbank with their project called Stargate. DeepSeek AI also gained attention from users as it reached number 1 on the US Apple app store and also became one of the top free Android apps on Google’s lay Store. DeepSeek could be a major disruptor in the global AI industry and could give industry leaders like OpenAI, Google and Perplexity tight competition considering that they are used widely by users for research and AI agent development.

Key Features of DeepSeek AI

Unlike many of their competitors DeepSeek AI is noteworthy because of the fact that they provide open source models and that their models only cost a fraction of what other AI startups have been spending on training models. Let’s look at some key features of the DeepSeek platform.

1. Efficient Architecture

One of the major features that DeepSeek has is the efficient architecture which uses a technique called mixture of experts which activates only essential computing resources for doing specific tasks. This optimizes the performance of the AI model and significantly reduces wastage.

2. Open Source Model

It is very noteworthy that DeepSeek AI’s R1 model is completely open source and available for developers to use and train according to their needs. DepSeek R1 is one of their advanced models and it gained a lot of attention from the media and the AI community because it rivals OpenAI’s GPT model o1. An open source model that’s this powerful promotes transparency, collaboration and innovation from the community while also eliminating the licensing costs for adopters which could be a great driving force in prompting developers to build more impactful AI solutions for the world without costing them a fortune.

3. Cost Effectiveness

DeepSeek AI stands apart from the rest of the pack when it comes to the cost effectiveness because it was built with a much lower budget when you compare it to similar AI models like OpenAI’s GPT 4 which cost hundreds of millions of dollars for OpenAI. At the same time DeepSeek only cost around 6 million dollars to build.

4. Global Accessibility

DeepSeek is also a breath of fresh air for AI development and AI consulting companies around the world because it allows you to access advanced AI capabilities for businesses that can’t afford premium AI models available in the US.

5. High Processing Speeds

The DeepSeek AI model is very fast when it comes to processing speed and can provide you with responses upto three times faster than some of the existing models can and this in turn enhances your user experience and productivity.

6. Customizability

If you're a developer, startup or enterprise looking to build custom solutions then DeepSeek is a great choice because of its open source nature. You can use the model and train it according to your business needs and build custom solutions because of the model’s open source license and adaptable architecture.

7. Scalability

Even though DeepSeek AI is very advanced it also has great potential for scaling because it only activates key computational units depending on what you are trying to achieve with it which ensures that the model is scalable even when demand grows.

8. Multilingual Capabilities

The AI model looks to be more than just a concept and aims to provide a flexible way for global users and builders to use LLMs and supports multiple languages.

9. Focus on Data Privacy

Data privacy has been a major discussion for AI especially in the case of LLMs because many LLMs use data from users to fine tune and improve their performance. Here DeepSeek AI comes with mechanisms that can process user data securely and allow you to maintain compliance with privacy standards.

10. Broader Scope

DeepSeek is a very flexible and powerful large language model and can be seamlessly implemented in a variety of different and diverse industries like finance, healthcare, e-commerce and customer service.

Cost of DeepSeek AI

When it comes to the cost of DeepSeek AI we have to consider the fact that it was built with a tiny budget of 6 million dollars which is significantly lower than what its competitors like OpenAI and Google. This also has benefits for DeepSeek AI users because a lower cost of production should mean a lower consumer cost. The DeepSeek AI model is also highly efficient and the costs per token for using the model is reportedly 95% lower than GPT-4. And this makes DeepSeek an ideal solution for businesses looking for cost effective tech. This could open up many possibilities for businesses around the world especially in third world countries where there is an abundance of talent but a lack of funding.

The AI model is also open source which means that you wouldn’t have to worry about paying any licensing fees when you use DeepSeek AI. On the other hand developing solutions using DeepSeek should take similar timelines when compared to other models because essentially DeepSeek uses the same technologies that other AI chatbot companies use which adds to its versatility because you don’t have to educate yourself on learning an entirely new set of technologies. The model also features affordable scaling for businesses because it uses a mixture of expert design which means that the system requires fewer additional computational resources which also reduces costs for businesses.

Another major point to note for businesses is that DeepSeek AI has lower computational needs which also translates to lower energy consumption and savings on hardware and electricity. DeepSeek also provides flexible pricing options for startups and enterprises where you can use their hosted APIs to empower your AI applications. All of these factors contribute to making DeepSeek a great choice for businesses looking for affordable yet capable LLM models to use in their various applications.

Key Innovations in the Development Process of DeepSeek AI

The development process the DeepSeek team has opted for is similar to how other large language models are built with a few key differences. For one DeepSeek AI has nailed the resource optimization aspects of the development and have used the limited resources they had efficiently even considering the sanctions that the US had imposed on advanced semiconductors. The other difference is in the architecture that they have used. DeepSeek focuses on a unique framework called mixture of experts which selectively activates computational nodes to minimize costs. The AI models that we know today use significant computing power and hundreds of millions of dollars are spent by AI companies in the US for this. At the same time DeepSeek AI has shown us that this can be achieved at a fraction of this cost.

Their motto has been rapid development and this is quite evident when you look at their product and they have used advanced methodologies to reduce the time it takes to train large language models. One of the steps they have taken to achieve this is their data centric approach where they have prioritized high quality data curation to train DeepSeek R1 for accuracy and reliability across tasks. The major innovation that DeepSeek AI has done is not in terms of the technology itself but how they have approached the design, training and deployment of their AI model by adopting cost saving measures which has proved that you can achieve scalability without overspending.

Benefits of Using DeepSeek AI

As you may have already figured out DeepSeek has many benefits for businesses that want to build cutting edge applications using LLM especially if you are on a tight budget. The first major benefit of the platform is of course the accessibility and affordability of the solution. DeepSeek AI is open source and you can make use of it even without having to pay for licensing fees. This opens up opportunities for SMEs and startups to enhance their capabilities without breaking the bank. If you don’t want the hassle of deploying open source AI models using your own cloud infrastructure you can easily use the DeepSeek API and integrate it into your applications to access the advanced features.

DeepSeek is also quite fast when compared to other similar engines in the market and can provide you with upto three times the processing speeds due to its different architecture. The DeepSeek AI chat is also similar to other LLMs like ChatGPT and Gemini which makes it very user friendly and allows you to implement it into your business without much effort. The open source nature of the AI model is also great for businesses because of the potential of open source contributions where developers in the community can provide their expertise and make the model better as compared to other solutions like ChatGPT which is closed and only controlled by OpenAI.

Final Words For DeepSeek AI

In 2025 we can see many startups rapidly develop AI solutions and DeepSeek AI is a great example for that. The emergence of highly capable AI models like DeepSeek in the open source space is a positive step forward towards building an AI future that is secure, transparent and most importantly accessible to businesses and developers to build cutting edge applications with. The background of the discussions regarding DeepSeek is uncertain and it remains to be seen what US companies will do to compete. But open source models like this force tech companies to improve their offerings and think about the customers first. This is why competitive markets always produce the best products. For now DeepSeek remains a great step in the right direction if the model is as capable as the DeepSeek team claims that it is. And we will be able to witness in the days to come how businesses leverage this technology and embrace its capabilities. We could see a DeepSeek AI agent soon.