What is DeepSeek? Chinese AI model outshining ChatGPT and shaking up the AI world

What is DeepSeek? Chinese AI model outshining ChatGPT and shaking up the AI world

ByMuskaan Sharma

Jan 27, 2025 07:53 PM IST

DeepSeek's AI Assistant outshines ChatGPT, becoming the leading free app on Apple's App Store in the US.

A Chinese AI startup has shaken the Silicon Valley after presenting breakthrough artificial intelligence models that are now overtaking world's best AI models at a fraction of the cost.

DeepSeek’s AI models have reportedly been developed at a fraction of the cost compared to OpenAI and Meta.(AFP)

DeepSeek's AI Assistant has take over rival ChatGPT to become the top-rated free application available on Apple's App Store in the United States.

What is DeepSeek?

DeepSeek was founded in 2023 by Liang Wenfeng, an engineer and entrepreneur who specialises in artificial intelligence and quantitative finance. Before creating DeepSeek, he led a hedge fund known for using AI to analyse financial data.

Now Liang’s team includes fresh graduates from top Chinese universities. The company has now developed AI models that are open-source and helping developers across the world to improve their technologies.

How is DeepSeek different from OpenAI?

With its sudden rise, comparisons are being made between DeepSeek and OpenAI. The one thing that sets DeepSeek R1, which is said to mimic human thinking, apart from other AI models is that it also provides its reasoning before delivering a response to a prompt. The company claims its performance is on par with OpenAI’s latest technology.

DeepSeek’s AI models are developed at a fraction of the cost compared to leading products from OpenAI and Meta, raising questions about the need for huge investments in high-end AI accelerators like those from Nvidia.

DeepSeek claims its R1 is better than rival models for mathematical tasks, general knowledge and question-and-answer performance. It also ranks among the top performers on a UC Berkeley-affiliated leaderboard called Chatbot Arena.

What is US worried?

To stop China from getting ahead in the tech supremacy race, US had banned the export of high-end technologies like GPU semiconductors to China. But DeepSeek’s progress now shows that US' tactics to stall AI advancement in China have not had a significant impact. It seems Chinese AI engineers have worked their way around the restrictions.

With DeepSeek’s success, OpenAI and other US companies like Meta will have to lower their pricing even as their vast spending is being questioned. Both Meta and Microsoft committed to $65 billion or more this year for AI infrastructure.

What are DeepSeek's shortcomings?

DeepSeek, like other Chinese AI models, exhibits self-censorship on sensitive topics in China. It avoids addressing queries about events such as the 1989 Tiananmen Square protests or a potential Chinese invasion of Taiwan. The bot also refuses to comment on Chinese President Xi Jinping.