Recently, DeepSeek has been in news for various reasons. This is one of important topic in current events. Here we bring some basic information about DeepSeek AI. Also check out various Artificial Intelligence Models.
Table of Contents
What is DeepSeek AI?
DeepSeek AI is a China-based Artificial Intelligence (AI) start-up / company that has developed open-source large language models (LLM). The company was co-founded in May 2023 by Liang Wenfeng, a graduate of Zhejiang University. The head office of the company is located in Hangzhou, Zhejiang in China.
In January 2025, DeepSeek AI released its DeepSeek-R1 model which provides reasonable good responses to various queries.
What is Artificial Intelligence (AI)?
Artificial Intelligence (AI) is a way of making computers think and act like humans. It helps machines learn from experience, understand information, and make decisions without being told exactly what to do.
For example:
- AI in your phone can recognize your voice and answer questions.
- AI in maps helps find the fastest route to your destination.
- AI in online shopping suggests products you might like.
- AI works by analyzing large amounts of data, finding patterns, and improving over time—just like how people learn from practice.
What is the Reason for DeepSeek AI being in News?
In January 2025, DeepSeek AI released its DeepSeek-R1 model. The DeepSeek-R1 model provides responses comparable to other contemporary large language models, such as OpenAI’s GPT. However, the training cost reported by DeepSeek is significantly lower than other LLMs. The company claims that it trained R1 for US$6 million compared to $100 million for OpenAI’s GPT-4 in 2023, and approximately one tenth of the computing power used for Meta’s comparable model, LLaMA 3.1.
Why DeepSeek is Causing Concern in the U.S.?
DeepSeek has been drawing significant attention—and concern—in the United States for several key reasons:
1. Cost Disruption: DeepSeek has reportedly developed its R1 model for under $6 million, a fraction of the billions invested by leading U.S. AI firms. This cost efficiency challenges the financial models of American tech companies, which rely on high development and operational costs to maintain competitive advantages. Additionally, DeepSeek’s AI services are more affordable than OpenAI’s offerings, potentially reshaping the market dynamics.
2. Technological Progress Despite U.S. Export Controls: The U.S. has imposed strict restrictions on exporting high-performance AI accelerator chips and GPUs to China. However, DeepSeek’s advancements suggest that cutting-edge AI innovation remains achievable without access to the most powerful U.S. hardware. This raises concerns about the effectiveness of such trade policies and their ability to limit technological competition.
3. A Challenge to Proprietary Business Models: Unlike OpenAI, which operates under a proprietary model and charges subscription fees, DeepSeek offers its technology as open-source and free. This threatens the revenue structures of U.S.-based AI companies, which depend on paid access to sustain their operations and growth.
4. Geopolitical and Strategic Implications: DeepSeek’s emergence represents a potential shift in global AI leadership, posing a challenge to U.S. dominance in the field. Some analysts have likened this to AI’s “Sputnik moment,” referencing the Soviet Union’s launch of Sputnik in the 1950s, which signaled a major technological leap in the space race. This comparison highlights the broader geopolitical stakes as AI increasingly becomes a pillar of national security, economic strength, and technological influence.
As DeepSeek continues to evolve, its impact on the global AI landscape—and the U.S. response to it—will be closely watched.
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Sources and References:
Official website of DeepSeek – www.deepseek.com
