DeepSeek AI

Last Updated: December 23, 2025
Share on:FacebookLinkedInX (Twitter)

DeepSeek AI is a research lab building powerful, open-source LLMs that rival top AI models at significantly lower costs.

At-a-Glance

  • Origin: Based in Hangzhou, China, and founded by the quantitative hedge fund High-Flyer Quant.

  • The base model, DeepSeek-V3 costed around 6 million USD  a tiny fraction of the hundreds of millions spent by Western rivals like OpenAI’s GPT and Google’s Gemini

Why DeepSeek Matters

DeepSeek sent shockwaves through the tech industry by proving that massive computing budgets aren't the only way to build world-class AI. 

Rather than relying on ever-larger clusters of GPUs, DeepSeek focuses on architectural decisions like how knowledge is organized, how computation is routed, and how reasoning steps are handled internally.

DeepSeek’s core identity is built on three pillars: 

1. Open Weights and Developer Freedom

DeepSeek has disrupted the AI industry by adopting an open-weights philosophy. Unlike closed models like GPT-5, which are strictly locked behind proprietary APIs, DeepSeek releases its model weights to the public. 

This gives developers and organizations the ability to:

  • Run models on their own infrastructure.

  • Maintain full control over sensitive data.

  • Customize or fine-tune models for specific use cases.

2. Reasoning Power

The DeepSeek-R1 model, which is famous for its Chain of Thought reasoning, is one of their major breakthroughs. This capability allows the model to solve complex math and coding problems by thinking through steps before it speaks. This allows it to:

  • Break down complex problems into intermediate steps.

  • Explore multiple solution paths.

  • Catch and correct its own errors mid-reasoning.

This puts its reasoning capabilities on par with the most advanced thinking models currently available.

3. Breaking the Cost Barrier

The most discussed aspect of DeepSeek is its efficiency. By using a Mixture-of-Experts (MoE) design, the model only activates a small, relevant portion of its brain for any given task.

Think of it as consulting a small panel of specialists instead of waking up the entire organization. This allows the 671-billion-parameter model to activate only about 37 billion parameters per task, slashing compute costs while maintaining high performance. This design dramatically reduces compute usage while preserving performance.

What DeepSeek Represents

DeepSeek is more than just another model release. It represents a philosophical shift in how advanced AI can be built.

  • You don’t need unlimited capital to compete at the frontier.

  • You don’t need to lock users into closed ecosystems to deliver value.

  • You don’t need brute force if you design smarter systems.

Quote

Deepseek-r1 just assured the future of open-source AGI and civilization. - Bindu Reddy, CEO of Abacus.AI

Stop Overpaying for AI.

Access every top AI model in one place. Compare answers side-by-side in the ultimate BYOK workspace.

Get Started Free