A Chinese made artificial intelligence (AI) model called DeepSeek AI released its latest version on 20 January. Quickly after this latest release, DeepSeek gained significant attention for its cost-effective and innovative AI models.
What makes DeepSeek AI very special is that it was built at a fraction of the cost of other leading Artificial Intelligence models in the tech industry like OpenAI.
DeepSeek is a Chinese artificial intelligence (AI) company which was established in 2023 by Liang Wenfeng. Liang Wenfeng is a co-founder of the Chinese hedge fund High-Flyer and currently serving as CEO for DeepSeek.
This Chinese AI startup led to $1 trillion US market crash this week and is storing huge amounts of US users data in China. US President Donald Trump said its was a “wake-up call” for US companies and IT industry who must focus on “competing to win”.
DeepSeek offers impressive performance compared to OpenAI’s ChatGPT. Despite of its popularity and sudden worldwide rise, the chatbot is cautious when asked about political figures, topics and historical events that oppose China’s government stance.
What is artificial intelligence?
Artificial intelligence (AI) is a technology that enables computers to perform a variety of tasks that are usually done by humans. AI has the ability to see, it can understand language, analyze data, make decisions, solve problems and much more. It can also complete tasks that are complex and time-consuming. AI can make computer seem like a human.
In recent years, Generative AI has emerged as a tech behind global AI chatbots like ChatGPT and DeepSeek AI. Millions of people across the world use AI tools like ChatGPT to help them in day-to-day tasks such as rephrasing and summarizing text, writing emails, answering questions, translation and content creation. Some people also use these AI tools to help them to write a basic level of coding and code debugging.
Cost affective DeepSeek AI
DeepSeek startup claims that it offers best performance compared to market leading AI models like OpenAI’s GPT-4. Also it has built at a fraction of the development cost compared to OpenAI. Training GPT-4 reportedly cost around $100 million, but DeepSeek was developed at a cost of around $6 million which was very less compared to OpenAI. DeepSeek also looks and works similar to a ChatGpt.
It is as powerful as OpenAI’s GPT models in performing tasks like coding, debugging and mathematics. Like many other Chinese artificial intelligence models Baidu's Ernie bot or Doubao by ByteDance, DeepSeek is trained to avoid politically sensitive topics and questions.
DeepSeek AI chatbot quickly surpassed ChatGPT as the most downloaded free app in Apple's US and UK stores and negatively affected some tech stocks. Users are inclined towards DeepSeek due to its impressive interface and quick response times.
After DeepSeek-R1 latest release, major tech giant companies saw a sudden and sharp drop in their stock prices. This includes $593 billion loss in Nvidia’s market value, which was biggest in US stock market history and stunned tech experts.
This indicates the ability of DeepSeek to shake up the IT giants and stock market with its cost effective, affordable and performance oriented AI chatbot models.
Along with China, India is also set to develop its own Artificial Intelligence (AI) Chatbot model, similar to ChatGPT and DeepSeek AI. Ashwini Vaishnaw, Indian Union Minister of Electronics and IT, has recently announced that India will develop its own AI model within next 10 months. Ashwini Vaishnaw, has also confirmed that groundwork for the AI model has already been started. The Government of India is very much excited to have its first self-reliant AI chatbot model, which may be tough competitor to ChatGPT and DeepSeek AI models.
