DeepSeek is a Chinese AI company that has gained significant attention in the tech industry. Founded by engineer Liang Wenfeng in Zhejiang, China, this new platform focuses on developing open-source large language models (LLMs) and other AI technologies.
On January 10, 2025, DeepSeek released its free chatbot app for iOS and Android platforms. By January 27, 2025, this app had surpassed ChatGPT as the most downloaded free app on the U.S. iOS App Store. DeepSeek’s AI models, particularly the DeepSeek-R1, have shown capabilities comparable to leading models like OpenAI’s GPT-4. Notably, these models were developed at a fraction of the cost and required significantly less computing power, making AI adoption more affordable.
The company has made its generative AI algorithms, models, and training details open-source, allowing for widespread use and modification by the global community. This open-source approach enables startup founders to customize AI solutions without vendor lock-in, offering cost efficiency and adaptability, particularly amid global semiconductor constraints. Additionally, DeepSeek’s innovative research and development (R&D) efforts have resulted in competitive AI models with high performance, even with limited hardware resources.
However, DeepSeek’s rapid rise has not been without controversy. The company has faced allegations of using ChatGPT data without permission, raising ethical concerns and potential reputational risks for businesses partnering with it. There are also concerns over data privacy and compliance with Chinese data regulations, along with the possibility that DeepSeek adheres to government censorship policies, which could affect global acceptability.
The emergence of DeepSeek has had notable effects on the stock market, with companies like Nvidia experiencing significant stock declines due to concerns over competition. Furthermore, DeepSeek’s availability on platforms like Clarifai and Azure AI Foundry has made its models more accessible to businesses and developers worldwide. However, geopolitical risks, including potential export controls and regulatory scrutiny on Chinese AI technologies, may pose long-term challenges for enterprises relying on DeepSeek.
Shortly after its launch, DeepSeek faced large-scale cyberattacks, leading to temporary limitations on new user registrations. Despite these setbacks, its rapidly growing ecosystem presents strategic advantages for early adopters who can navigate the technical expertise required to leverage its models effectively.
These are some pros and cons for founders who are looking to utilize DeepSeek in their business:
| Pros | Cons |
Cost Efficiency: DeepSeek’s AI models use fewer chips and reduce operational costs, making AI adoption more affordable. | Data Privacy Issues: Potential concerns over data security and compliance with Chinese data regulations. |
High Performance: Models demonstrate competitive AI capabilities even with limited hardware resources. | Censorship Compliance: Possible adherence to Chinese government censorship policies may affect the global acceptability of solutions. |
Innovative R&D: Cutting-edge advancements in algorithm design and software efficiency. | Limited Market Trust: Controversy and regulatory scrutiny may deter investors and enterprise customers. |
Rapidly Growing Ecosystem: Being an early adopter could position a startup for strategic advantages as the technology gains traction. | Technical Expertise Required: Leveraging DeepSeek’s open-source model requires a high level of technical knowledge. |
DeepSeek’s emergence underscores the dynamic and rapidly evolving landscape of artificial intelligence, highlighting increasing global competition and innovation. While its cost efficiency and customization benefits are appealing, founders and businesses must carefully weigh these advantages against ethical concerns, data security issues, and geopolitical risks. Conducting thorough due diligence and developing contingency plans will be essential for those considering DeepSeek’s AI solutions.
