Table of Contents
What is DeepSeek AI?
DeepSeek is a Chinese artificial intelligence (AI) company that has rapidly gained recognition in the AI industry. Founded in 2023 by entrepreneur Liang Wenfeng and backed by the hedge fund High-Flyer, the company is headquartered in Hangzhou, Zhejiang. Despite being relatively new, DeepSeek is already competing with established AI giants by developing advanced large language models (LLMs).
This article explores what DeepSeek is, why it is making a significant impact, how its release affected the market, how it compares to other AI platforms, and what it means for businesses.
Why DeepSeek AI is a Game Changer
DeepSeek is attracting attention because it is revolutionising AI development by making it more cost-effective and widely accessible. Its leading model, DeepSeek-R1, performs at a level comparable to major AI models like OpenAI’s GPT-4o but is significantly cheaper to develop.
Most advanced AI models require investments of over $100 million. In contrast, DeepSeek-R1 was created with just $6 million, thanks to optimised training techniques and efficient computing power use. This proves that high-quality AI does not have to come at an exorbitant cost.
This breakthrough is crucial because it makes powerful AI tools available to a broader audience, breaking the financial barriers that typically limit AI adoption to large corporations.
The Impact of DeepSeek AI’s Release
On 10 January 2025, DeepSeek launched a free chatbot app powered by the DeepSeek-R1 model for iOS and Android. Within weeks, it became the most downloaded free app on the iOS App Store in the United States, surpassing ChatGPT.
The launch triggered significant market shifts. By 27 January 2025:
- The stock prices of major AI and tech companies declined, with Nvidia losing 18% of its value.
- The AI and computer hardware sectors saw a collective loss of $593 billion in market value.
DeepSeek’s emergence demonstrated that its approach to AI development was strong enough to challenge industry leaders and reshape the competitive landscape.
How DeepSeek Compares to OpenAI and Google
DeepSeek differentiates itself from competitors in three key areas:
1. Open-Source vs. Proprietary AI Models
Unlike OpenAI, Google DeepMind, or Anthropic, which keep their AI models private, DeepSeek supports open-source AI. This approach allows businesses, developers, and researchers to freely access, modify, and enhance its models.
2. Cost-Effective AI Development
DeepSeek has proven that high-performance AI can be developed at a fraction of the traditional cost. While companies like OpenAI and Google spend hundreds of millions on training their models, DeepSeek-R1 was built for just $6 million, making AI more affordable for startups and smaller businesses.
3. Greater Efficiency with Lower Computing Power Requirements
DeepSeek’s models require less computational power and energy compared to other leading AI models. This makes it a practical solution for businesses that lack access to expensive computing infrastructure.
How Businesses Can Benefit from DeepSeek AI
DeepSeek’s technology presents both opportunities and challenges for businesses. Here’s how companies can take advantage of it:
1. Lower AI Costs
Businesses can integrate AI solutions at a much lower cost, reducing the need for expensive software while still benefiting from innovative technology.
2. AI Solutions for Businesses of All Sizes
Because DeepSeek’s models are open-source, businesses—whether startups or large enterprises—can customize AI tools to fit their specific needs without the burden of licensing fees.
3. Competitive Edge Through AI Innovation
DeepSeek AI promotes innovation by allowing businesses to develop their own AI-driven solutions tailored to their industries. Early adopters may gain a significant advantage over competitors.
4. Navigating AI Risks and Compliance
Despite its advantages, businesses must consider security and regulatory compliance when implementing AI solutions. As AI governance evolves, companies must stay informed about legal and ethical responsibilities.
Should Businesses Switch to DeepSeek AI or Wait?
As DeepSeek continues to gain traction, businesses must decide whether to transition to DeepSeek AI now or wait. Here are key factors to consider:
Reasons to Adopt DeepSeek AI Now
- Cost Savings: DeepSeek AI is a more affordable alternative to major AI providers, making it attractive for cost-conscious businesses.
- Customisation: The open-source nature of DeepSeek AI allows companies to modify and tailor AI models to their specific needs.
- Early-Mover Advantage: Businesses that integrate DeepSeek AI early may gain a competitive edge by leveraging its technology before it becomes mainstream.
Reasons to Wait
- Long-Term Viability: As a new company, DeepSeek’s long-term success and support infrastructure are still developing.
- Integration Challenges: Businesses already using AI solutions from OpenAI or Google may face technical difficulties when transitioning to DeepSeek AI.
- Regulatory Considerations: Companies operating in regions with strict AI regulations must ensure compliance before making a switch.
The Future of AI: What DeepSeek’s Rise Means for the Industry
DeepSeek is not just another AI startup; it is reshaping the AI industry by proving that high-performance AI can be both powerful and affordable. By making AI technology more accessible, DeepSeek is driving innovation and increasing competition across various sectors.
For businesses, DeepSeek presents an opportunity to implement AI in a more cost-effective and flexible manner. However, as with any disruptive technology, organisations must carefully consider how best to integrate it while staying compliant with evolving AI regulations.
DeepSeek’s rapid growth is a sign of change for the AI industry. The future of AI is not only about computational power but also about efficiency, accessibility, and openness. Businesses that embrace these principles will be well-positioned to thrive in an AI-driven world. However, organisations that rely on long-term stability and existing AI integrations may prefer to monitor DeepSeek’s progress before making a commitment.
Growthlabs: Pioneers in AI Marketing
At Growthlabs, we are proud adopters of cutting-edge AI technology that has revolutionised marketing strategies. Our innovative approach leverages AI to deliver personalised, data-driven solutions that drive growth and engagement.
If you’re looking to harness the power of AI in your marketing efforts, look no further. Contact us today to see how we can help you achieve your marketing goals with the latest AI advancements.
