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DeepSeek complete explained: Everything you need to know 2025
DeepSeek, a Chinese AI firm, is shaking up the industry with its low-cost, open-source large language models, posing a serious challenge to U.S. tech giants.
Breaking the AI Norms
For years, the belief was that developing powerful large language models required massive funding and cutting-edge technology. That’s why the U.S. government pledged to back the $500 billion Stargate Project, announced by President Donald Trump.
But DeepSeek has flipped that idea on its head. On January 20, 2025, the Chinese AI firm stunned the world by releasing its R1 large language model (LLM) at a fraction of the cost of its competitors. What made it even more disruptive? DeepSeek offered its R1 models under an open-source license, making them freely available to the public.
Within days, DeepSeek’s AI assistant—an easy-to-use chatbot app powered by R1—shot to the top of Apple’s App Store, surpassing OpenAI’s ChatGPT in downloads. The ripple effect was immediate: On January 27, 2025, stock markets took a hit as investors started doubting the long-term dominance of U.S.-based AI companies. Tech giants like Nvidia, Microsoft, Meta, Oracle, and Broadcom saw their stock values plummet as the world took notice of DeepSeek’s rapid rise.
What is DeepSeek?
DeepSeek is an AI research company based in Hangzhou, China. It was founded in May 2023 by Liang Wenfeng, a graduate of Zhejiang University and co-founder of High-Flyer, a quantitative hedge fund that owns DeepSeek. While the company’s funding and valuation remain undisclosed, its impact on the AI landscape is undeniable.
DeepSeek is committed to developing open-source LLMs. Its first model debuted in November 2023, but it wasn’t until January 2025—with the release of the groundbreaking R1 reasoning model—that the company gained worldwide recognition.
The company offers multiple access points for its AI models, including a web platform, a mobile app, and an API for developers.
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