Introduction
Deepseek is a Chinese AI startup that makes Large Language Models. Its name is Deepseek-R1 model. January 2025 have created quite stir in tech industry as these models are running at very low cost but performance is outclass. In this article we will tell you features, use and How DEEPSEEK works.
Deepseek-R1 model
Low cost, High efficiency
- It costs only 5-6 Million Dollars to train the DeepSeek R1 model which is very less compared to the 100 Million Dollars for GPT-4.
- The model was trained on fewer GPUs while Western models use thousands of higher-end GPUs.

Reinforcement learning
Deepseek used reinforcement learning in R1 such that model began to learn on its own and generate new logic.
Global impact and Industry reaction
Stock Market reaction
Coinciding with R1 launch tech stocks collectively saw a major slump. Investors’ concerns about AI infrastructure and cost structure roiled the industry.
Democratizing AI
DeepSeek’s cost-efficient and open-source models have democratized AI development. Now even small companies, start ups, and countries can access advanced AI tools.
Controversies and regulatory concerns
- Censorship and privacy: DeepSeek models reportedly certain politically sensitive topics, specifically about Chinese Government criticism gives limited or censored responses
- US political regulatory scrutiny: Recently, some US republican senators have raised concerns about data security and possible misuse of user data via DeepSeek, and proposals have been brought to ban its use in federal contracts.

Additional capabilities
DeepSeek-coder-V2 is an advanced code language model that is an open source and provides equal or better performance than models like GPT-4 Turbo, especially in code -related tasks. It supports 86+ programing languages, and is also very strong in Maths and reasoning.
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My opinion
DeepSeek is an AI initiative that combines high end performance with low cost, efficient infrastructure. DeepSeek genuinely challenges the paradigms of AI development provoking very interesting and complex conversations.