What is DeepSeek and why is it causing panic in the AI world?
DeepSeek: The Full Story of the Chinese Artificial Intelligence
What is DeepSeek and why is it causing panic in the AI world?
Chinese startup DeepSeek has launched its DeepSeek-R1 model , sending shockwaves through American tech companies.
Who is DeepSeek? Origins and Strategy
Establishment and financing
Founded in July 2023 by Liang Wenfeng , a graduate of Zhejiang University , as a research arm of the hedge fund High-Flyer .
Quick facts about DeepSeek:
- It is fully funded by High-Flyer , giving it the freedom to innovate away from investor pressure.
- It has only 160 employees , most of whom are graduates of prestigious Chinese universities.
- It uses a mixture of mathematicians and poets to enhance creativity in models.
How DeepSeek Outperformed the Giants?
Major technical innovations
Mixture of Experts (MoE) structure
Only 10% of the model's parameters are active in each task, which significantly reduces power consumption according to an arXiv study .
Reinforcement Learning
It relies on self-rewards rather than labeled data, reducing costs by 70% according to TechTarget .
Compare prices
| The model | API Price (per million tokens) |
|---|---|
| OpenAI o1 | $15 (Input) – $60 (Output) |
| DeepSeek-R1 | $0.55 (input) – $2.19 (output) |
What is the impact of Deepseek on the global market?
January 27, 2025: The Big Crash Day
Global reactions
"This is Sputnik AI's moment."
Why all the fuss about DeepSeek?
DeepSeek Claims
- The V3 model cost only $6 million.
- 90% more energy efficient than competitors
Criticisms of skeptics
- Scale AI reports it has 50,000 H100 chips.
- Experts: The actual cost may be three times the advertised amount.
security concerns
Countries that have banned DeepSeek:
- United States (Pentagon, NASA)
- European Union (Italy)
- India, South Korea, Taiwan
The main reason: Data storage in China is subject to government censorship, according to Reuters .
What are the future challenges and opportunities of DeepSeek?
Available opportunities
- Growth in Asia and Africa where there are no political restrictions
- Expansion into specialized AI (e.g., healthcare)
