DeepSeek: The Company behind Chinas Revolutionary AI Model

The world of Artificial Intelligence is witnessing a groundbreaking evolution with the emergence of DeepSeek, a company that produced a cutting-edge AI model that is setting new standards in machine learning and natural language processing. As industries race to integrate AI into their operations, DeepSeek is making headlines for its unparalleled capabilities and transformative potential.

Liang Wenfeng a Chinese AI entrepreneur created DeepSeek as an Artificial Intelligence Lab to his financial company called High-Flyer. The financial business has been developing AI trading learning models that consist mostly of American made Nvidia computer chips. In 2022 the U.S. banned the export of high-end semiconductor technology to curve development of AI. In 2023 DeepSeek was created, its focus was set specifically for research on AI development.

What is the New AI Model at DeepSeek?

On January 2025, DeepSeek R1 AI model was released to enhance various AI-driven tasks, such as text generation, image recognition, code generation, and even complex problem-solving. Unlike its predecessors, R1 integrates cutting-edge techniques in reinforcement learning, self-supervised learning, and neural architecture search, making it a highly adaptable and efficient model. Despite the lack of high-end processors to run the R1, it still outperforms the latest common models.

The development and deployment of AI models come with substantial costs, primarily driven by computational power, data acquisition, energy consumption, and ongoing maintenance. Training large-scale AI models demands high-performance GPUs and TPUs, which can cost millions in cloud computing expenses alone. Additionally, acquiring vast, high-quality datasets for training, paying AI researchers and engineers, and managing energy-intensive operations contribute to the hefty price tag. AI models also require continuous updates and monitoring to maintain peak performance. DeepSeek claims to have produced their V3 model for $5.6 million which is the premise for R1 compared to Open AI’s staggering $5 billion for o1 in 2024.   

What makes DeepSeek Different than Other AI Models?

Natural Language Understanding
While models like GPT-3.5 and GPT-4 excel in natural language processing, they often struggle with maintaining consistency over long-form conversations. DeepSeek, in contrast, offers enhanced language comprehension, allowing for more accurate summarization, nuanced translation, and better sentiment analysis. For instance, when translating complex literature, DeepSeek produces translations that retain cultural context and subtleties better than its predecessors.

Efficiency and Scalability
Traditional models like OpenAI’s GPT-4 and Google’s BERT require massive computational resources for fine-tuning and deployment. DeepSeek, on the other hand, employs a more optimized architecture that reduces processing power requirements while maintaining superior performance. A direct comparison shows that DeepSeek can generate responses in half the time of GPT-4 while consuming 30% less computational energy, making it a cost-effective solution for enterprises.

Context Aware Intelligence
While ChatGPT is proficient at short conversations, it often loses track of context in prolonged interactions. DeepSeek overcomes this limitation by incorporating long-term memory retention, which allows it to maintain coherence even in multi-turn dialogues. In real-world applications, this means that a legal AI assistant powered by DeepSeek can reference previous points in a discussion, ensuring a more logical and context-aware conversation, something earlier models frequently struggled with.

Multimodal Capabilities Unlike GPT-3.5, which primarily focuses on text-based applications, and even GPT-4, which has limited multimodal capabilities. DeepSeek is designed to process text, images, audio, and structured data seamlessly. This means that, for example, an AI-driven customer support system using DeepSeek can analyze a customer’s uploaded screenshots, interpret the text within them, and provide more relevant assistance—something previous models struggled to achieve with high accuracy.

The Future of Artificial Intelligence

As AI continues to evolve at a rapid pace, DeepSeek stands at the forefront of this transformation. With ongoing improvements and wider adoption, its influence is expected to grow exponentially, shaping the future of AI-powered automation and human-machine interactions.  At the moment the U.S. maintains a hold on major Semi-Conductor Technology. On a global scale leadership, ethics, and regulations are imperative for moving forward to share AI technology.

The Artificial Intelligence Action Summit took place in Paris February 10 & 11, bringing together heads of state, industry leaders, academics, and representatives to discuss the future of AI.  The US and UK rejected signing the declaration of “Inclusive and sustainable” which aims to make American AI open source and to make AI affordable to the other 60 countries who signed, including China.  Many different viewpoints were made throughout the summit which highlights the complex balance that is required for implementing safeguards and innovation in the AI industry worldwide.