Why trust Greenbot
DeepSeek is shaking up the AI world. Built by a Chinese startup, this open-source model processes information step by step, making it sharp at math, coding, and problem-solving.
What makes it stand out? Cost-effectiveness. While OpenAI’s GPT-4 cost over $100 million to train, DeepSeek’s creators pulled it off for just $6 million. It’s leaner, faster, and uses less memory—giving bigger models a run for their money.
Its impact is massive. The DeepSeek app shot to the top of Apple’s free download charts. But success came with risks. Cyberattacks forced temporary shutdowns, proving just how quickly it grabbed attention.
So, how does DeepSeek compare to other models like ChatGPT? And what makes it different from other tech giants in AI? Let’s break it down.
Who is Behind DeepSeek?
DeepSeek is from China. It’s the brainchild of Liang Wenfeng, an AI expert and entrepreneur who launched the company in 2023, running it under High-Flyer, a hedge fund he co-founded.
The startup is based in Hangzhou and moves fast. By early 2025, it rolled out DeepSeek-R1, an AI chatbot that skyrocketed to the top of Apple’s free app charts. The company claims its models can compete with heavyweight AI companies like OpenAI and Meta—at a fraction of the cost.
DeepSeek isn’t just a business. It’s a research-first company. It works closely with top Chinese universities and aggressively hires AI talent. Instead of fully open-source AI, it takes an open-weight approach—offering access but keeping some parts locked down.
Of course, with success comes scrutiny. Some countries, like Australia and Italy, have restricted DeepSeek over data privacy concerns. Since its servers are in China, critics worry about government oversight and security risks. These concerns have fueled debates about AI safety and regulations.
How DeepSeek Works
DeepSeek processes complex questions step by step, ensuring sharp and precise answers.
It learns fast. As a large language model, it fine-tunes itself over time, improving its understanding of context. The result? Smarter responses, better logic, and stronger problem-solving skills.
DeepSeek runs on distributed training across multiple GPUs. This setup speeds up learning while using less energy. It also maximizes memory, making responses faster and more efficient.
Its transformer-based architecture is designed to scale. Unlike other models, DeepSeek keeps things lightweight. It delivers high performance without draining massive computing power.
At its core, DeepSeek isn’t just about keeping up with AI trends—it’s about making AI smarter, faster, and more accessible.
What Does DeepSeek Do?
DeepSeek is built for real-time problem solving. Businesses use it for fraud detection, financial forecasting, and AI security. Doctors rely on it to analyze medical data and predict disease patterns. Researchers use its reasoning capabilities for simulations and advanced problem-solving.
At its core, DeepSeek AI runs on a multi-head latent attention system, which boosts accuracy and speed. The DeepSeek models include DeepSeek-R1, built with 685 billion parameters and a Mixture of Experts (MoE) system.
Developers turn to DeepSeek Coder for automatic bug fixes, security improvements, and faster coding. DeepSeek Math helps researchers solve complex cryptography, physics, and machine learning equations. Unlike other language models, DeepSeek uses specialized models fine-tuned for logical inference.
How does it compare to large language models? DeepSeek focuses on advancing AI with efficiency and an optimized model size. While other AI tools aim for general tasks, DeepSeek prioritizes accuracy in technical fields. Its rise has increased its market value, but concerns over a potential AI data breach remain.
DeepSeek is making waves in the AI industry. With a Chinese AI startup pushing forward and detailed growth plans, it’s redefining what AI can do across industries.
Is DeepSeek Safe to Download and Use?
DeepSeek’s rise has raised big questions about data privacy. It runs on China-based servers, which worries some users and governments. The main concern? A lack of transparency. No one outside the company can fully verify how it stores or handles sensitive data.
Some countries, including Australia and Italy, have restricted DeepSeek, citing AI security risks. While the company says it encrypts user data, privacy experts argue that’s not enough. Without independent audits, it’s impossible to confirm how private or secure it really is.
There’s also talk about bias. Some reports claim that DeepSeek struggles with politically sensitive topics, raising concerns about algorithmic influence. This could impact legal analysis, financial forecasting, and news summaries.
Regulations make things even more complicated. Some worry that China’s cybersecurity laws could give the Chinese government access to DeepSeek’s data, leading to strict reviews in Europe and parts of Asia.
Bottom line? DeepSeek is powerful, but AI data breaches and privacy risks make it controversial.
DeepSeek vs ChatGPT – How Do They Compare?
DeepSeek and ChatGPT take different approaches to AI. DeepSeek models use a Mixture of Experts (MoE) system to boost efficiency, while ChatGPT relies on reinforcement learning and step-by-step reasoning.
Which one is better? It depends. Benchmark tests show that DeepSeek outperforms ChatGPT in coding and technical problem-solving. A Samsung AI researcher found it handled complex programming tasks better than ChatGPT-4o. Meanwhile, Google’s Chrome Developer Experience team noted improvements in code generation when using DeepSeek with Claude Sonnet.
For creativity, though, ChatGPT still leads. It’s better for natural conversations, writing, and brainstorming.
DeepSeek wins on cost-effectiveness. It requires fewer resources for training, making it an attractive option for companies looking to cut AI expenses. However, ChatGPT has a firmer grip on enterprise AI, mainly due to stricter AI security policies.
The choice comes down to priorities. If you need technical precision, DeepSeek delivers. If privacy and creativity matter more, ChatGPT is the safer bet.
DeepSeek’s Reputation and Industry Perception
DeepSeek is shaking up the AI industry. It proves that advancing AI doesn’t have to come with sky-high costs. Experts call it a “Sputnik moment” for its open-source nature, showing China is becoming a serious player in AI innovation.
But success comes with controversy. Some praise its efficiency. Others worry about AI security and data privacy. Reports of bias in political discussions raise questions about how it was trained. Meanwhile, export controls and regulations limit its reach in Western markets.
A major cyberattack didn’t help its reputation. Hackers hit DeepSeek, forcing temporary shutdowns. This sparked concerns about its open-source approach, which made it more vulnerable to cyber threats.
Despite the risks, DeepSeek is growing rapidly. Its long-term success depends on handling AI security and data privacy concerns. Will it rise to challenge other tech giants, or will regulations slow it down? The market is watching.
Market Impact and DeepSeek’s Future
DeepSeek’s rapid rise is shaking up the AI world. It’s proving that cutting-edge AI doesn’t have to cost billions. Investors are paying attention. Instead of pouring money into massive AI projects, they’re now backing leaner, more efficient models. Hedge funds are shifting towards startups that optimize computing power like DeepSeek V3.
The financial impact has been huge. Nvidia stock took a major hit, dropping over $600 billion in market value. Why? DeepSeek proved that AI models can run efficiently without relying on high-end GPUs. This shift also affects data centers and nuclear energy companies, as lower compute power requirements change how AI infrastructure is built.
China is gaining ground in the AI race. DeepSeek’s success has driven up investor interest in Chinese tech stocks. Companies like Alibaba and Baidu are benefiting, signaling a broader shift in AI dominance. With its ability to handle mathematical reasoning, optimize training data, and improve answering questions, DeepSeek is proving itself as a real challenger to other tech giants.
The future? AI will be all about efficiency, cost-effectiveness, and security. But concerns remain. How will DeepSeek handle highly sensitive data? Will regulations slow it down? One thing is clear—DeepSeek isn’t just changing AI models. It’s changing the entire AI industry.
FAQs About DeepSeek
What is DeepSeek, and how does it work?
DeepSeek is an AI model built to handle real-time problem solving, focusing on efficiency. It uses tensor parallelism to speed up processing and improve logical inference. Unlike other models, it prioritizes accuracy while keeping training costs low.
Is DeepSeek AI safe to use?
Security is a big concern. DeepSeek runs on China-based servers, raising red flags for some governments. While it encrypts data, users can’t fully verify how it’s stored. The Chinese government has strict regulations on AI, which adds another layer of uncertainty
What makes DeepSeek different from other AI models?
Its open-source nature makes it accessible, but its cost-effectiveness stands out. It delivers high performance without the massive budgets required by other tech giants. It’s a strong competitor to leading models like GPT-4, proving AI doesn’t have to be expensive to be powerful.
Can DeepSeek be used for professional applications?
Yes! Businesses, researchers, and developers use it for computer science, finance, and more. It’s especially useful in coding, data analysis, and AI-driven decision-making. The DeepSeek app is already a hit, showing its value in real-world scenarios.
Will DeepSeek remain open source?
It follows an open-source nature, but not everything is fully accessible. Some features remain closed off, allowing customization but limiting full transparency.
How does DeepSeek impact AI investments and the stock market?
DeepSeek’s rise has shaken up the AI world. Companies are making massive investments in AI efficiency, shifting focus from high-cost models to smarter, leaner systems. This has impacted Nvidia’s market, leading to shifts in Nvidia stock as demand for high-end GPUs fluctuates.
How does DeepSeek compare to ChatGPT?
Benchmarking puts DeepSeek close to leading models like ChatGPT-4. Benchmark tests show it outperforms in coding and reasoning tasks, while ChatGPT remains stronger in creative applications. Both have strengths, but DeepSeek is gaining ground at a rapid pace.
DeepSeek: Our Conclusion
DeepSeek AI is changing the game with its cost-efficient, high-performance model. It challenges traditional AI by optimizing resources while delivering strong reasoning capabilities. Its open-source nature makes it accessible, but concerns over AI security and bias remain.
Its market impact is undeniable. Businesses and researchers value its problem-solving abilities, and its affordability gives it an edge. But its future depends on how well it handles security risks and keeps up with innovation.
