In the ever-evolving world of artificial intelligence, competition is fiercer than ever.
It’s 2025, and the speculation about robots taking over the world feels less like science fiction and more like a reality.
While robots already exist, an even more transformative force reshaping lives globally is AI.
Just last week, during his inauguration, US President Donald Trump announced a groundbreaking US$500 billion initiative to develop his ambitious AI project, Stargate, in the United States.
This venture, spearheaded by Japanese conglomerate SoftBank and OpenAI, the creator of ChatGPT, signals the global AI race.
However, a new kid is on the block in the world of AI.
DeepSeek, a startup based in Hangzhou, China, is making headlines with its latest AI models. The company claims its technology can rival industry leaders like OpenAI and Meta, all while being significantly more cost-effective.
Here’s everything you need to know about the new Deepseek R1.
What Is DeepSeek?
Founded in 2023, DeepSeek is the brainchild of Liang Wenfeng, co-founder of the quantitative hedge fund High-Flyer.
A graduate of Zhejiang University, Liang has channelled his financial expertise and $8 billion in assets into developing AI solutions that challenge the status quo.
The company’s recent AI chatbot has gained attention not only for its capabilities but also for its accessibility.
Deepseek is available on both Apple and Google app stores. The chatbot became widely accessible earlier this year, quickly climbing to the top of Apple’s free app chart.
DeepSeek’s AI Models Are Cheaper than OpenAI’s Model
DeepSeek’s AI models have been described as being on par with OpenAI’s and Meta’s most advanced offerings. What sets DeepSeek apart is its efficiency—one of its models is reportedly 20 to 50 times cheaper to use than comparable OpenAI models.
This cost advantage raises questions about the vast amounts of money US tech companies are pouring into AI development.
For instance, Goldman Sachs estimates that OpenAI, Google, and other major players are collectively investing nearly $1 trillion into AI over the next few years. In contrast, DeepSeek has reportedly spent only $6 million to develop its app.
Industry insiders are particularly intrigued by DeepSeek’s ability to train its systems using Nvidia chips, despite export restrictions on these chips for Chinese companies.
However, DeepSeek has declined to comment on these allegations.
DeepSeek’s Global Impact
DeepSeek’s emergence has sent shockwaves through global markets. This is because it is developed at such a low cost that it causes the share prices of tech firms to tank.
Last week, US tech stocks tumbled after DeepSeek announced that its models could compete directly with those of US tech giants at a fraction of the cost.
The news caused many investors to raise questions about the high levels of investment being poured into AI development by American companies.
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