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What is DeepSeek?

DeepSeek, a Chinese startup, has developed an AI model that matches and beats ChatGPT’s performance, running on significantly less computing power and money, causing a disruption in the AI industry and causing Nvidia’s stock to tank.

Deepseek app for web search and Q&A assistance.
Image: KnowTechie

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DeepSeek, a Chinese startup that seemingly came out of nowhere, just dropped an AI model that’s making Silicon Valley sweat bullets.

And when I say sweat bullets, I mean Nvidia’s stock literally tanked 17% in a single day, wiping out $600 billion faster than you can say “artificial intelligence.”

Here’s the deal: DeepSeek built something that matches (and sometimes beats) ChatGPT’s performance, but here’s the kicker – they did it with way less cash and computing power.

We’re talking $5.5 million vs OpenAI’s $100+ million to train their models. That’s like showing up to a Formula 1 race with a souped-up Honda Civic and smoking everyone.

What is DeepSeek, exactly?

Quick Answer: DeepSeek is a Chinese company building AI systems that can process and understand human language, similar to OpenAI, Google, and Micorosoft.

Great, another large language model company. Big whoop. What’s the big fuss?

Well, the company developed an AI system that can write code, solve math problems, help with homework, and basically handle any text-based task you throw at it – but with a twist.

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Image: KnowTechie

Quick Facts

DeepSeek is a Chinese AI startup based in Hangzhou, Zhejiang, founded in 2023.

Established by Liang Wenfeng, the co-founder of High-Flyer, focusing on AI-driven quantitative trading.

Topped Apple’s App Store charts, sparking a shift in AI technology dynamics and market evaluations.

Allows public access and modification, distinguishing it from more closed competitors.

Here’s what makes DeepSeek actually interesting

  1. It’s Stupid Efficient
    The whole thing runs on about 27.4 times less money per operation than other AI tools. Imagine getting the same pizza for a quarter of the price – that’s basically what’s happening here.
  2. It’s Open Source
    Unlike other AI companies that keep their secret sauce locked up tight, DeepSeek lets anyone peek under the hood.
  3. It’s Surprisingly Good at Hard Stuff
    Where DeepSeek really shines is with technical tasks. We’re talking about:
    • Coding (it can write and debug code like a caffeinated programmer)
    • Math (it handles complex problems better than your old calculus teacher)
    • Logical reasoning (it can actually explain why it’s doing what it’s doing)

When to Use DeepSeek

Perfect For

  • Coding projects (especially if you’re learning)
  • Math and science homework help
  • Technical writing and documentation
  • Complex problem-solving
  • When you’re on a budget but need powerful AI

Maybe Skip It For:

  • Basic chatting (though it can do it)
  • Creative writing (it’s better for more complex tasks)
  • When you need hand-holding through tasks

Performance That’ll Make Your Jaw Drop

Let’s get nerdy for a second. On the AIME 2024 mathematics benchmark, DeepSeek-R1 scored 79.8%, edging out OpenAI’s latest model at 79.2%.

For those keeping score at home, that’s like beating the final boss with less health and worse weapons.

Here’s a quick comparison:

FeatureDeepSeekChatGPT
Training Budget$5.5M$100M+
Token Cost$0.48/million$3-$15/million
Model Size671B parametersUndisclosed
Math Accuracy79.8%79.2%

The Cost Factor

Remember when your mom said “money doesn’t buy happiness”? Well, DeepSeek just proved that it doesn’t buy AI superiority either.

Their base fees are approximately 27.4 times cheaper per token than OpenAI’s offering. That’s not a typo – it’s actually that much cheaper.

Why This Matters

This isn’t just about some new AI tool dropping – this is about disruption with a capital D.

The app is so hot right now it’s topped the App Store charts, knocking ChatGPT off its perch.

And get this: it’s open source. That means anyone can peek under the hood and tinker with it, unlike the “trust us, bro” approach from other AI companies.

The Real MVP: Technical Tasks

DeepSeek is absolutely crushing it when it comes to technical tasks.

If you’re into coding, logical reasoning, or anything that requires more brain power than deciding what to watch on Netflix, DeepSeek might be your new best friend.

How to Actually Use It (Quick Start Guide)

Getting started with DeepSeek is pretty straightforward:

  1. Web Interface:
  2. API (For the Tech-Savvy):
    • Grab the open-source code
    • Run it locally if you want
    • Build your own tools with it
  3. Mobile app
DeepSeek app launch interface with action buttons.
Image: KnowTechie

Pro Tips for Getting the Most Out of It

  1. Be Specific
    The more detailed your questions or prompts, the better the results. Don’t ask “how do I code?” Ask “how do I write a Python function that sorts a list of numbers?”
  2. Use It for Learning
    DeepSeek is great at explaining complex stuff. Ask it to break down concepts step by step.
  3. Compare Answers
    When working on important stuff, cross-reference its answers with other sources. It’s smart, but it’s not infallible.

Remember: Like any tool, DeepSeek is as good as the person using it. It’s not magic – it’s more like having a really smart friend who’s always available to help with the hard stuff.

The Bottom Line

Look, I’m not saying DeepSeek is going to take over the world (yet), but they’ve definitely thrown a wrench in the AI industry’s gears. They’ve managed to turn resource restrictions into innovation, which is pretty damn impressive.

If you’re sleeping on DeepSeek, it’s time to wake up. This isn’t just another AI chatbot – it’s a sign that the AI game is changing faster than anyone expected.

Whether you’re a tech enthusiast, developer, or just someone who likes to stay ahead of the curve, DeepSeek is something you need to keep an eye on.

And hey, at these prices, what do you have to lose? Except maybe the excuse that AI tools are too expensive to mess around with.

What’s your take on DeepSeek shaking up the AI industry? Have you tried comparing it with ChatGPT or other AI tools? Share your experiences in the comments below

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Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at kevin@knowtechie.com.

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