What is DeepSeek?
DeepSeek is a start-up founded and owned by the Chinese stock trading firm High-Flyer. Its goal is to build A.I. technologies along the lines of OpenAI’s ChatGPT chatbot or Google’s Gemini. By 2021, DeepSeek had acquired thousands of computer chips from the U.S. chipmaker Nvidia, which are a fundamental part of any effort to create powerful A.I. systems.
Why did the stock market react to it now?
When DeepSeek introduced its DeepSeek-V3 model the day after Christmas, it matched the abilities of the best chatbots from U.S. companies like OpenAI and Google. That alone would have been impressive. But the team behind the new system also revealed a bigger step forward. In a research paper explaining how it built the technology, DeepSeek said it used only a fraction of the computer chips that leading A.I. companies relied on to train their systems.
Why is that important?
Since late 2022, when OpenAI set off the A.I. boom, the prevailing notion had been that the most powerful A.I. systems could not be built without investing billions of dollars in specialized A.I. chips. That would mean that only the biggest tech companies – such as Microsoft, Google and Meta, all of which are based in the United States – could afford to build the leading technologies.
How did DeepSeek make its tech with fewer A.I. chips?
Top A.I. engineers in the United States say that DeepSeek’s research paper laid out clever and impressive ways of building A.I. technology with fewer chips. In short, the startup’s engineers demonstrated a more efficient way of analyzing data using the chips. Leading A.I. systems learn their skills by pinpointing patterns in huge amounts of data, including text, images and sounds. DeepSeek described a way of spreading this data analysis across several specialized A.I. models – what researchers call a “mixture of experts” method – while minimizing the time lost by moving data from place to place.
Is DeepSeek’s tech as good as systems from OpenAI and Google?
DeepSeek-V3 can answer questions, solve logic problems and write its own computer programs as effectively as anything already on the market, according to standard benchmark tests. Just before DeepSeek released its technology, OpenAI had unveiled a new system, called OpenAI o3, which seemed more powerful than DeepSeek-V3. But OpenAI has not released this system to the wider public.
What does it mean for the future of A.I.?
DeepSeek’s research paper raised questions about whether big U.S. companies could maintain a significant lead in A.I. Many experts believe that A.I. technology will become a commodity, with many companies selling much the same product.
Conclusion
DeepSeek’s impressive performance has sent shockwaves through the tech world, raising questions about the future of A.I. and the role of the United States in its development. While some experts argue that the U.S. still has a significant lead in A.I. technology, others believe that DeepSeek’s achievements could signal a shift in the global landscape. As the world continues to grapple with the implications of this new technology, one thing is clear: the future of A.I. is about to get a lot more interesting.
FAQs
Q: What is DeepSeek?
A: DeepSeek is a start-up founded and owned by the Chinese stock trading firm High-Flyer, with the goal of building A.I. technologies along the lines of OpenAI’s ChatGPT chatbot or Google’s Gemini.
Q: Why did the stock market react to DeepSeek now?
A: The stock market reacted to DeepSeek’s announcement of its DeepSeek-V3 model, which matched the abilities of the best chatbots from U.S. companies like OpenAI and Google.
Q: How did DeepSeek make its tech with fewer A.I. chips?
A: DeepSeek’s engineers demonstrated a more efficient way of analyzing data using the chips, spreading data analysis across several specialized A.I. models while minimizing time lost by moving data from place to place.
Q: Is DeepSeek’s tech as good as systems from OpenAI and Google?
A: DeepSeek-V3 can answer questions, solve logic problems and write its own computer programs as effectively as anything already on the market, according to standard benchmark tests.
Q: What does this mean for the future of A.I.?
A: DeepSeek’s research paper raised questions about whether big U.S. companies could maintain a significant lead in A.I. Many experts believe that A.I. technology will become a commodity, with many companies selling much the same product.

