DeepSeek AI Explained: How This Newcomer Is Changing the AI Game

Mar 10 / AI Degree
Artificial Intelligence has long been dominated by industry giants like OpenAI, Google, and Meta. These companies have shaped the field with billion-dollar investments, proprietary models, and cutting-edge research. But now, a new player has arrived, and it’s disrupting the status quo—DeepSeek AI.

DeepSeek AI
is not just another AI model. It has achieved something that few thought possible: delivering high-level reasoning capabilities while being open-source, cost-efficient, and scalable. Unlike its Western competitors, which require massive computing resources, DeepSeek has managed to achieve similar—if not better—performance using far fewer resources. This not only makes it more accessible but also raises critical questions about AI development strategies. If DeepSeek can do it with fewer GPUs, why can’t OpenAI and Google?

So, what exactly is DeepSeek? How does it work, and what does it mean for the future of AI? Let’s break it down.

The Origins of DeepSeek AI

DeepSeek AI didn’t just appear out of nowhere. It was founded by Leang Fen Wang, a Chinese engineer with a background in quantitative trading. Wang wasn’t originally focused on AI—his expertise was in the financial sector, where he used algorithms and machine learning to predict market trends and automate stock trading.


Over time, Wang realized that the AI models he was using had significant limitations in reasoning. They could process data and find patterns, but they lacked true problem-solving abilities. This realization led him to a bold decision—pivot his entire hedge fund’s focus toward developing advanced AI models.

However, Wang and his team faced a major obstacle: China’s restricted access to high-end GPUs


The U.S. had imposed strict regulations on the export of AI-specific hardware to China, making it incredibly difficult for Chinese researchers to train large AI models. Instead of seeing this as a roadblock, Wang viewed it as an opportunity. His team began working on new training techniques that would allow them to develop state-of-the-art AI models using significantly fewer resources. This breakthrough laid the foundation for DeepSeek’s highly efficient AI architecture.

What Makes DeepSeek AI Different?

DeepSeek AI isn’t just another language model—it represents a major paradigm shift in how AI models are trained and deployed. Here’s what sets it apart:

1. Reasoning Model (DeepSeek R1) – The Chain of Thought Approach

Most AI models provide instant answers based on pre-trained patterns. DeepSeek R1, however, operates differently. It doesn’t just spit out an answer—it thinks through the problem step by step.

This is called Chain of Thought reasoning, a method where the AI breaks down complex problems into logical steps before reaching a conclusion. This makes DeepSeek R1 especially powerful for tasks like mathematics, coding, and logical problem-solving.

For example, if you ask a typical AI model a difficult math problem, it might provide an answer without showing its work. DeepSeek, on the other hand, explains each step of its thought process, showing how it arrived at the final answer. This transparency not only improves trust but also makes it far more useful for users who want to understand the logic behind AI-generated responses.

2. Cost Efficiency – AI That Runs on a Budget

AI training is expensive—insanely expensive. Companies like OpenAI and Google use tens of thousands of high-performance GPUs to train their models, often racking up hundreds of millions of dollars in costs.

DeepSeek, however, has managed to train its model using just 2,000 GPUs—a fraction of what its competitors use. For perspective, Meta’s latest AI model, Llama 4, was trained on over 100,000 GPUs. That’s a staggering difference.

What does this mean? AI development doesn’t have to be ridiculously expensive. DeepSeek has shown that with smarter training techniques, AI models can be built and maintained at a fraction of the cost. This could democratize AI development, allowing smaller companies and research teams to compete with tech giants.

3. Mixture of Experts (MoE) – Smarter AI, Not Just Bigger AI

DeepSeek R1 uses a Mixture of Experts (MoE) architecture, a highly efficient design that activates only the necessary parts of the neural network instead of using the entire model for every task.

Think of it like this: Imagine you’re running a company with a team of specialists—one expert in finance, one in marketing, and one in engineering. Instead of asking every single employee for input on every problem, you only consult the relevant expert for each task. That’s how DeepSeek’s MoE works.

By activating only the relevant “experts” for each request, DeepSeek drastically reduces computational costs while maintaining high performance. This makes it one of the most efficient AI models available today.

4. Reinforcement Learning – AI That Teaches Itself

Unlike traditional AI models that rely on human-labeled training data (a process known as Supervised Learning), DeepSeek R1 was trained primarily through Reinforcement Learning.

This means the model teaches itself. Instead of following a strict set of human-provided rules, it learns through trial and error, receiving rewards for correct answers and penalties for mistakes. Over time, it refines its reasoning and improves its performance autonomously.

This is a game-changer because it allows AI to develop advanced problem-solving skills without requiring massive amounts of labeled data, which is often expensive and time-consuming to obtain.

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How Does DeepSeek Compare to Other AI Models?

DeepSeek AI has quickly proven itself to be one of the most advanced AI models available. Here’s how it stacks up against the competition:

  • Mathematics (MMLU Benchmark): Matches or outperforms OpenAI’s top models.
  • Codeforces (Coding Challenges): Scores in the 96th percentile, making it one of the most capable coding AIs.
  • General Knowledge & Problem-Solving: While OpenAI’s o1 model still holds a slight edge in broad knowledge retrieval, DeepSeek excels in structured reasoning and logic-based tasks.

The Open-Source Disruption – Why This Matters

Unlike OpenAI and Google, which have shifted toward closed-source AI, DeepSeek is completely open-source. This is a huge deal because it allows anyone to:
  • Inspect and modify the code.
  • Build custom AI applications on top of DeepSeek.
  • Reduce reliance on expensive, proprietary AI models.
DeepSeek’s open-source approach is already sparking innovation, as developers around the world contribute to making the model even better.

The Future of DeepSeek AI

DeepSeek is just getting started. Here’s what to expect in the near future:
  • Smaller, more efficient models that run on everyday consumer hardware.
  • Even better reasoning abilities through continued reinforcement learning.
  • More global adoption as companies seek cost-effective AI solutions.

DeepSeek AI is proving that AI development doesn’t have to be limited to billion-dollar companies. By making AI more efficient, affordable, and open-source, it’s reshaping the industry and challenging the old way of doing things. The AI landscape is changing rapidly, and DeepSeek is leading the charge into a future where AI is more accessible, transparent, and powerful than ever before.

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