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What is DeepSeek? Things to Know About the New AI tool

Introduction:

The evolution of artificial intelligence has brought us innovative tools for finding, analyzing, and creating information. One such AI-powered system making waves is DeepSeek. But what exactly is DeepSeek, who created it, and how does it work? In this guide, we’ll cover everything you need to know about this ground-breaking AI tool.

What is DeepSeek?

DeepSeek is a Chinese artificial intelligence company. It was founded in 2023 by Liang Wenfeng. Despite being a relatively young company, it has released a couple versions of its AI model.

DeepSeek has also invested extensively in AI research, competing with companies like OpenAI and Nvidia like Anthropic and Perplexity.

Two of their models, DeepSeek R1 and DeepSeek V3, brought the company to the forefront for their affordable and high accuracy parameters.

DeepSeek is an advanced AI model designed to provide comprehensive search and analytical capabilities using deep learning and natural language processing (NLP). It is a sophisticated tool that allows users to ask complex questions and receive insightful, well-structured responses. Unlike traditional search engines that return a list of links, DeepSeek processes information and generates detailed answers, making it a powerful resource for research, business intelligence, and personal knowledge enhancement.

Who created DeepSeek?

DeepSeek was founded by Liang Wenfeng, a former hedge fund entrepreneur with a keen interest in artificial intelligence. The company, based in China, was established with the goal of advancing AI research and competing with global tech giants like OpenAI and Meta. DeepSeek has focused on optimizing model efficiency and developing cost-effective AI solutions, particularly in response to U.S. export controls on advanced chips. Liang has emphasized that DeepSeek’s mission is driven by curiosity and a commitment to making China a leader in AI innovation.

How does DeepSeek work?

DeepSeek operates using a combination of deep learning, large-scale data processing, and structured reasoning to generate responses with high accuracy. Its AI models follow a step-by-step logical process, similar to human reasoning, rather than making instant conclusions. This structured approach improves reliability, particularly in complex tasks like mathematical problem-solving and code generation.

The system is built on a proprietary large language model (LLM) that enhances contextual awareness and multilingual capabilities. It employs a multi-stage training process, including reinforcement learning and rejection sampling, to optimize clarity, consistency, and reasoning. DeepSeek is also cost-efficient, running its models at significantly lower costs than competitors like OpenAI’s ChatGPT

DeepSeek incorporates a Mixture-of-Experts architecture and FP8 mixed-precision training to improve efficiency. Its modular design allows easy integration into various industries, including finance, healthcare, and commerce, where it can analyze large datasets, detect fraud, and provide real-time insights​

Several DeepSeek AI models are available for public use, including:

  • DeepSeek-V3 – This is an open-source model with 671 billion parameters. It is completely free to use. Users can access it via an online demo or download it for local use, including commercial applications. The model is optimized for various AI tasks, including natural language processing and reasoning tasks.
  • DeepSeek-R1 – This model is fully open-source and MIT-licensed, meaning it can be freely used, modified, and commercialized. It is available through an API, and smaller distilled models (32B & 70B) are also open-source. DeepSeek-R1 aims to provide high-performance AI capabilities while being accessible to the open-source community.

Both models offer free access and open-source code, making them strong alternatives to proprietary AI systems like OpenAI’s models.

DeepSeek operates by leveraging deep learning algorithms to process and generate human-like responses to queries. Here’s a step-by-step breakdown of how it works:

  • Input Processing: When a user inputs a query, DeepSeek analyzes the text using NLP techniques to understand the intent and context.
  • Information Retrieval: The AI scans its extensive knowledge base, which includes publicly available datasets, academic sources, and other reliable materials.
  • Data Analysis: DeepSeek synthesizes relevant information, filtering out irrelevant or outdated content.
  • Response Generation: The model formulates a coherent and contextually appropriate response based on its findings.
  • User Interaction: Depending on the platform, users may refine their queries or request additional details to enhance their understanding.

What kinds of questions can users ask DeepSeek?

DeepSeek is designed to handle a wide range of questions across different domains. Users can ask:

  • General Knowledge Questions:” How many planets in our solar system?”
  • Business Intelligence Questions: “What are the key strategies for effective digital marketing?”
  • Health & Science Questions: “What are the symptoms of iron deficiency?”
  • Programming & Coding Assistance: “How do I fix a syntax error in Python?”
  • Historical & Cultural Questions: “Who was the first person to climb Mount Everest?”

With its vast database, DeepSeek can offer valuable insights across multiple disciplines, making it a versatile tool for learners, professionals, and researchers alike.

What are the benefits of DeepSeek?

DeepSeek offers numerous advantages, making it a valuable AI tool. Some key benefits include:

  • Fast Information Retrieval: Users can get instant, well-structured answers without sifting through multiple sources.
  • Contextual Understanding: Unlike traditional search engines, DeepSeek understands the intent behind queries, providing more relevant responses.
  • Improved Decision-Making: Businesses and researchers can rely on DeepSeek for data-driven insights.
  • Multidisciplinary Expertise: It covers a broad range of topics, making it suitable for diverse use cases.
  • Enhanced Productivity: Saves time by delivering concise and accurate responses, reducing the need for extensive manual research.

What are the limitations of DeepSeek? How accurate is it?

DeepSeek has limitations in areas like accuracy in complex tasks and computational resource demands. While it excels in specific fields like code generation and problem-solving, models like DeepSeek-Coder-V2 fall behind leading competitors (e.g., GPT-4) in software engineering benchmarks, with accuracy around 43-74% depending on the task​. Additionally, large models can be challenging to run locally due to their heavy computational needs​. However, DeepSeek’s Mixture-of-Experts (MoE) architecture helps optimize efficiency, improving performance at a lower cost compared to models like OpenAI’s ChatGPT​.

To ensure accuracy, users should verify important information by cross-referencing with authoritative sources.

Conclusion

DeepSeek is a groundbreaking AI-powered tool that revolutionizes how users’ access and analyze information. From students and researchers to businesses and developers, it serves as an invaluable resource for various needs. While it offers impressive capabilities, users should be mindful of its limitations and verify critical information when necessary.

As AI technology continues to evolve, DeepSeek and similar tools will likely become even more sophisticated, offering greater accuracy and expanding their range of applications. Whether you’re looking for quick answers or in-depth research assistance, DeepSeek is a powerful addition to the digital information landscape.

Frequently Asked Questions

DeepSeek is a Chinese AI company that develops open-source large language models (LLMs). It was founded in 2023 and is backed by High-Flyer, a Chinese hedge fund. The company has gained attention for its efficient AI models that significantly reduce computing costs compared to OpenAI’s ChatGPT.
DeepSeek is open-source, allowing anyone to use and modify its technology. It also claims to offer high-performance AI at a fraction of the cost of other major models. Its API pricing is reportedly over 90% cheaper than OpenAI’s models.
DeepSeek gained massive attention after releasing its new model, DeepSeek-R1, on January 20, 2025. The model reportedly performs as well as or better than OpenAI’s offerings while being built at a lower cost. This news had a major impact on the AI industry and even influenced Nvidia’s stock price.
While DeepSeek functions similarly to ChatGPT in basic chatbot interactions, it lacks features like AI image and video generation, advanced customization, and plugin integrations. However, its API is significantly cheaper, making it attractive for businesses looking for cost-effective AI solutions.
Yes, the DeepSeek chatbot is free to use in its standard form. However, professional users who require API access for tasks like coding and automation must pay per token usage, with prices significantly lower than OpenAI’s GPT API.
Unlike ChatGPT, DeepSeek does not offer advanced tools like AI image generation, voice interaction, or multimodal capabilities. Additionally, since it is developed in China, there are concerns about potential content censorship or regional restrictions.
DeepSeek’s parent company, High-Flyer, purchased over 10,000 Nvidia A100 GPUs before U.S. restrictions on AI chip exports were implemented. More recently, DeepSeek used Nvidia’s H800 chips, which are still available for sale in China.
Yes, DeepSeek offers an API for businesses and developers, allowing integration into applications for tasks like natural language processing and coding assistance. Its cost-effective pricing structure makes it a strong competitor in the enterprise AI space.
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