ARTICLE ON DEEPSEEK

ARTICLE ON DEEPSEEK

DeepSeek, a Chinese artificial intelligence (AI) startup, has rapidly emerged as a significant player in the AI industry, challenging established entities with its innovative and cost-effective large language models (LLMs). Founded in May 2023 by Liang Wenfeng, an AI enthusiast and Zhejiang University graduate, DeepSeek operates as an independent AI research lab under the umbrella of High-Flyer, a quantitative hedge fund also co-founded by Wenfeng. citeturn0search

Rapid Development and Model Releases

DeepSeek's journey began with the release of its first model, DeepSeek Coder, in November 2023, followed by the DeepSeek-LLM series later that month. In January 2024, the company introduced two DeepSeek-MoE models (Base and Chat), and by April 2024, it had unveiled three DeepSeek-Math models: Base, Instruct, and RL. The momentum continued with the release of DeepSeek-V2 in May 2024 and DeepSeek-Coder V2 in June 2024. September 2024 saw the launch of DeepSeek V2.5, which received an update in December 2024. In December 2024, DeepSeek released the base model DeepSeek-V3-Base and the chat model DeepSeek-V3.

Disrupting the AI Landscape

The release of DeepSeek's cost-effective LLMs has had profound implications for technology, trade, and U.S.-China economic relations. Predictions suggest a substantial reduction in AI costs due to algorithmic improvements and a shift in AI value creation from training to application tasks. These developments have prompted U.S. tech executives to reassess the effectiveness of tech export controls, as Chinese advancements continue despite restrictions.

Global Impact and Industry Response

DeepSeek's advancements have not gone unnoticed. Major companies have addressed DeepSeek's impact during earnings calls, with leaders acknowledging the potential of DeepSeek's cost-effective AI models to drive innovation and efficiency. For instance, Airbnb CEO Brian Chesky highlighted the profound impact on travel, citing the commoditization of AI models as beneficial for innovation. Similarly, AMD’s CEO Lisa Su viewed it as a positive innovation promoting broader AI adoption.

Challenges and Controversies

Despite its successes, DeepSeek has faced challenges, including a significant cyberattack in January 2025, leading to its longest service outage in approximately 90 days. Additionally, concerns have been raised about data security and privacy, especially given DeepSeek's Chinese origins. Critics argue that Chinese AI companies operate under distinct requirements that grant their government broad access to user data and intellectual property, raising questions about data governance and privacy frameworks across different regulatory environments.

Conclusion

DeepSeek's rapid ascent in the AI industry underscores the dynamic and competitive nature of AI development. By delivering high-performance models at a fraction of traditional costs, DeepSeek has challenged established norms and prompted a reevaluation of global AI strategies. As AI continues to evolve, DeepSeek's trajectory offers valuable insights into the future landscape of artificial intelligence.


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