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Why you should pay attention to DeepSeek AI

Jan 27, 2025 - zdnet.com
DeepSeek, a Chinese AI startup founded by Liang Wenfeng, has made a significant impact in the AI industry with its open-source reasoning model, R1, which reportedly outperforms OpenAI's o1 model in various benchmarks. The model's open-source nature and lower cost make it accessible to smaller labs and researchers, potentially diversifying the AI field. However, DeepSeek has faced challenges, including a cyberattack that led to limited signups and privacy concerns similar to those surrounding TikTok, as user data may be stored on servers in China.

Despite these issues, DeepSeek's R1 model has gained popularity, surpassing ChatGPT in App Store downloads and ranking third on HuggingFace's Chatbot Arena. The model's success highlights a shift in AI development, allowing smaller entities to compete with major tech companies. This development comes amid tense Chinese-American tech relations, following the partial implementation of a TikTok ban in the US.

Key takeaways:

  • DeepSeek, a Chinese AI startup, has released an open-source reasoning model, R1, which outperforms OpenAI's o1 and has become highly popular, surpassing ChatGPT in App Store downloads.
  • R1 is significantly cheaper to access than comparable models, with API access starting at $0.14 for a million tokens, compared to OpenAI's $7.50 for the same tier.
  • Privacy concerns have arisen regarding DeepSeek's data collection and potential sharing with the Chinese government, although the open-source nature of R1 allows for increased transparency.
  • R1's success signifies a shift in AI development, enabling smaller labs and researchers to create competitive models, potentially impacting the AI investment landscape.
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