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DeepSeek’s rapid rise has disrupted the AI landscape, offering a cost-effective, open-source alternative to OpenAI.
Its impact on the stock market and U.S. tech dominance signals a major shift in AI competition.
Here’s what we know:
- The Chinese AI firm was founded in 2023. Its key models include DeepSeek-R1 (reasoning), DeepSeek Coder, Janus Pro (vision). DeepSeek-R1 was developed for <$6M, far cheaper than OpenAI’s models.
- R1’s success led to a U.S. tech stock sell-off on Jan. 27, 2025, challenging U.S. AI dominance. DeepSeek was subsequently targeted by large-scale attacks on the same day.
- DeepSeek’s models use reinforcement learning, reward engineering, and distillation. The firm has been able to develop advanced AI despite U.S. chip restrictions.
- Unlike OpenAI, DeepSeek offers free access to its LLMs. This new business model significantly undercuts OpenAI’s pricing.
Take a deeper dive on DeepSeek at TechTarget.
