What is DeepSeek and Why everyone are talking about it?
To understand why DeepSeek has made such a stir, it helps to start with AI and its capability to make a computer seem like a person.
A machine uses the technology to learn and solve problems, typically by being trained on massive amounts of information and recognising patterns.
The end result is software that can have conversations like a person or predict people's shopping habits.
In recent years, it has become best known as the tech behind chatbots such as ChatGPT - and DeepSeek - also known as generative AI.
These programs again learn from huge swathes of data, including online text and images, to be able to make new content.
But these tools can also create falsehoods and often repeat the biases contained within their training data.
Millions of people use tools such as ChatGPT to help them with everyday tasks like writing emails, summarising text, and answering questions - and others even use them to help with basic coding and studying.
What is DeepSeek?
DeepSeek (深度求索), founded in 2023, is a Chinese company dedicated to making AGI a reality. Unravel the mystery of AGI with curiosity. Answer the essential question with long-termism. 🐋 (reference)ChatGPT vs DeepSeek
DeepSeek represents the latest challenge to OpenAI, which established itself as an industry leader with the debut of ChatGPT in 2022. OpenAI has helped push the generative AI industry forward with its GPT family of models, as well as its o1 class of reasoning models, which include o3 and o4 mini.
DeepSeek is available on the App Stores; however, Germany’s data protection commissioner has asked Apple and Google to remove Chinese AI startup DeepSeek from their app stores in the country due to concerns about data protection.
The two US tech giants must now review the request promptly and decide whether to block the app in Germany, she added.
DeepSeek did not respond to a request for comment. Apple and Google were not immediately available for comment.
According to its own privacy policy, DeepSeek stores numerous personal data, such as requests to its AI programme or uploaded files, on computers in China.
Why DeepSeek is so Popular!
AI is a power-hungry and cost-intensive technology — so much so that America’s most powerful tech leaders are buying up nuclear power companies to provide the necessary electricity for their AI models.Meta last week said it would spend upward of $65 billion this year on AI development. Sam Altman, CEO of OpenAI, last year said the AI industry would need trillions of dollars in investment to support the development of high-in-demand chips needed to power the electricity-hungry data centers that run the sector’s complex models.
So the notion that similar capabilities as America’s most powerful AI models can be achieved for such a small fraction of the cost — and on less capable chips — represents a sea change in the industry’s understanding of how much investment is needed in AI. The technology has many skeptics and opponents, but its advocates promise a bright future: AI will advance the global economy into a new era, they argue, making work more efficient and opening up new capabilities across multiple industries that will pave the way for new research and developments.
Andreessen, a Trump supporter and co-founder of Silicon Valley venture capital firm Andreessen Horowitz, called DeepSeek “one of the most amazing and impressive breakthroughs I’ve ever seen,” in a post on X.
If that potentially world-changing power can be achieved at a significantly reduced cost, it opens up new possibilities — and threats — to the planet.
Why it is raising alarms in the U.S.
While there was much hype around the DeepSeek-R1 release, it has raised alarms in the U.S., triggering concerns and a stock market sell-off in tech stocks. On Monday, Jan. 27, 2025, the Nasdaq Composite dropped by 3.4% at market opening, with Nvidia declining by 17% and losing approximately $600 billion in market capitalization.DeepSeek is raising alarms in the U.S: for several reasons, including the following:Cost disruption. DeepSeek claims to have developed its R1 model for less than $6 million. The low-cost development threatens the business model of U.S. tech companies that have invested billions in AI. DeepSeek is also cheaper for users than OpenAI.
Technical achievement despite restrictions: The export of the highest-performance AI accelerator and GPU chips from the U.S. is restricted to China. Yet, despite that, DeepSeek has demonstrated that leading-edge AI development is possible without access to the most advanced U.S. technology.
Business model threat. In contrast with OpenAI, which is proprietary technology, DeepSeek is open source and free, challenging the revenue model of U.S. companies charging monthly fees for AI services.
Business model threat. In contrast with OpenAI, which is proprietary technology, DeepSeek is open source and free, challenging the revenue model of U.S. companies charging monthly fees for AI services.
Geopolitical concerns: Being based in China, DeepSeek challenges U.S. technological dominance in AI. Tech investor Marc Andreessen called it AI's "Sputnik moment," comparing it to the Soviet Union's space race breakthrough in the 1950s.
DeepSeek bans
Countries and organizations around the world have already banned DeepSeek, citing ethics, privacy and security issues within the company. Because all user data is stored in China, the biggest concern is the potential for a data leak to the Chinese government. The LLM was also trained with a Chinese worldview -- a potential problem due to the country's authoritarian government.
Places where DeepSeek is banned include the following:
DeepSeek bans
Countries and organizations around the world have already banned DeepSeek, citing ethics, privacy and security issues within the company. Because all user data is stored in China, the biggest concern is the potential for a data leak to the Chinese government. The LLM was also trained with a Chinese worldview -- a potential problem due to the country's authoritarian government.
Places where DeepSeek is banned include the following:
- Australian government agencies.
- India central government.
- Italy.
- NASA.
- South Korea industry ministry.
- Taiwan government agencies.
- Texas state government.
- U.S. Congress.
- U.S. Navy.
- U.S. Pentagon.
