DeepSeek has demonstrated the potential to develop cutting-edge AI models with significantly lower resource requirements compared to major players like OpenAI.
DeepSeek is an AI model (a chatbot) that functions similarly to ChatGPT, enabling users to perform tasks like coding, reasoning and mathematical problem-solving. It is powered by the R1 model, which boasts 670 billion parameters, making it the largest open-source large language model as of Jan. 28, 2025.
DeepSeek developed two models: v3 and R1. DeepSeek’s R1 model excels in reasoning by producing responses incrementally, mimicking human thought processes. This approach reduces memory usage, making it more cost-effective than many competitors. DeepSeek stands out among AI-powered chatbots for its cost-efficiency. It is said to have cost just $6 million to develop, a fraction of the $100-million-plus price tag for OpenAI’s GPT-4.
