Deepseek Chinese Chatgpt: What is Deepseek, a Chinese AI model that shook Chatgpt, Nvidia and sent the AI ​​world into a frenzy: Explained in 10 points

There is a new player in the artificial intelligence market: Deepseek. Deepseek is a new AI model from China that has caught the attention of the tech world, outperforming the likes of ChatGPT, Gemini and Claude AI.The DeepSeek app, which launched last week, has overtaken competitors like ChatGPT to become the most downloaded free app in the United States. Shares of US-based and AI-related technology companies such as Nvidia, Microsoft and Meta fell on Monday ahead of the opening of US markets, BBC reports.

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What is Deepseek, China’s Game Changer in AI?: Explained in 10 Points

-DeepSeek is a Hangzhou-based AI research lab and the R1 is its latest AI model. The company was founded in 2023 by Liang Wenfeng, an engineer and entrepreneur with a background in AI and quantitative finance, according to India Today.

– Before founding DeepSeek, he ran a hedge fund known for using AI to analyze financial data. Liang’s team at DeepSeek consists mainly of recent graduates from leading Chinese universities such as Tsinghua and Peking University.

– The company has now developed AI models that are open source and help developers around the world improve their technologies. It is based on the open-source DeepSeek-V3 model, which its researchers say was developed for less than $6m (£7.5m) – significantly less than the billions spent by competitors.READ ALSO: Video: Barron Trump’s reaction as President Donald Trump introduces him goes viral, netizens call him ‘humble’ – DeepSeek is an advanced open source AI system, it surpassed OpenAI’s ChatGPT to become the top-rated free app in several countries Apple’s App Store, including the US, UK and China. The rise of DeepSeek caused a stir in Silicon Valley and challenged the assumption that the US had a dominant position in the field.

-The latest version of DeepSeek, R1, competes with industry leaders such as OpenAI and Anthropic, but stands out for its cost effectiveness, open source and unlimited free use. According to an NDTV report, it enables powerful AI access without the high costs usually associated with such technologies.

-The only thing that sets DeepSeek R1, which is designed to mimic human thinking, from other AI models is that it also provides its reasoning before providing an answer to a prompt. The company claims that its performance is comparable to OpenAI’s latest technology.

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-DeepSeek’s AI models are developed at a fraction of the cost compared to leading products from OpenAI and Meta, raising questions about the need for huge investments in high-end AI accelerators like those from Nvidia.

-One of the main reasons DeepSeek has made a splash is its cost to end users: it’s free. In a way, this is the first extremely advanced AI system available to users for free. Other systems, such as OpenAI o1 and Claude Sonnet, require a paid subscription. Google Gemini is also available for free, but the free versions are limited to older models and there are usage restrictions.

– The main reason behind the enthusiasm for DeepSeek is that the Chinese AI assistant is celebrated for its transparency, efficiency and ability to make AI accessible to everyone. DeepSeek’s breakthrough comes at a time when the US has restricted exports of advanced semiconductors to China, aiming to limit China’s ability to make advances in AI. DeepSeek has managed to get around these limitations by developing models that require fewer resources.

-The rise of DeepSeek had an immediate impact on the stock market. Shares of major US AI companies, including Nvidia, Meta and Microsoft, fell in response to DeepSeek’s success. Analysts have warned that the rise of low-cost Chinese alternatives to established U.S. AI models could disrupt the investment landscape and force companies to rethink their AI strategies.