No one expected a simple hedge fund project in China to challenge the world’s biggest tech giants. Yet, with the launch of DeepSeek, a Chinese AI startup, the landscape of artificial intelligence is shifting dramatically. Competing against OpenAI, NVIDIA, and Google Gemini, DeepSeek has emerged as a game-changer.
Its impact has been profound that it has wiped out over $1 trillion from the U.S. stock market, triggering a sharp decline in the share prices of Microsoft, NVIDIA, Google and more. The shockwaves didn’t stop there. Newly elected U.S. President Donald Trump called DeepSeek’s launch a “wake-up call” for the United States.
What makes DeepSeek even more notable is its cost efficiency. While OpenAI reportedly spent nearly $100 million training its AI models and Google Gemini invested close to $200 million, DeepSeek achieved similar results with just $6 million which is just a fraction of the cost.
Adding to that, China strategically launched DeepSeek on the same day as Donald Trump’s inauguration, further fueling speculation.
To find out what DeepSeek is, why it has gained popularity overnight, and whether it is better than ChatGPT or Google Gemini, keep reading. Is it truly a revolutionary tool or just another conspiracy? This article will provide insights and answers to all these questions.
What is DeepSeek?
DeepSeek is a Chinese startup led by Liang Wenfeng, the co-founder of the quantitative hedge fund High-Flyer. Surprisingly, DeepSeek started as a side project just a year ago and has since evolved into a major player in artificial intelligence. In simple terms, DeepSeek is an LLM-powered natural language chatbot, similar to ChatGPT. However, while the tech world was already aware of DeepSeek, its initial model failed to gain attention due to its limited capabilities.
DeepSeek’s Breakthrough: Reinforcement + Supervised Learning
DeepSeek has introduced two models: R1 Zero and R1. R1 Zero was trained entirely using reinforcement learning, without any supervised learning. R1, the breakthrough model, was built upon R1 Zero but combined reinforcement and supervised learning, making it significantly more advanced.
This approach sets DeepSeek apart from OpenAI’s GPT-4 and Google Gemini, which rely solely on supervised learning. Supervised learning involves training AI on a massive labeled dataset, where the expected output is predefined. Reinforcement learning, on the other hand, does not rely on a fixed dataset. Instead, the algorithm learns in real-time through trial and error. By integrating both methods, DeepSeek achieves a unique balance of structure and adaptability, giving it an edge over existing models.
Why is it the talk of the town?
One of DeepSeek’s biggest advantages is that its advanced model is completely free, whereas users must pay for ChatGPT and Google Gemini advanced versions.
Additionally, DeepSeek is fully open-source, unlike its competitors. This means anyone can access, modify, and improve its code, offering a level of transparency and customization that proprietary models like ChatGPT do not provide.
ChatGPT versus DeepSeek: Which is better?
DeepSeek’s R1 appears to be more suited for tasks that require extensive reasoning, such as coding, mathematics, and structured problem-solving. It effectively addresses logic-based inquiries, often providing concise and accurate responses. Although DeepSeek claims that R1 is comparable to OpenAI’s ChatGPT, its emphasis seems to be more on technicality and efficiency.
In contrast, ChatGPT offers a more conversational and adaptable experience. It excels in creative writing, brainstorming, and informal discussions, while still managing technical subjects effectively. Its interface is more refined, featuring elements such as chat history, voice mode, and customization options, which enhance interactivity and user-friendliness.
What are the drawbacks of DeepSeek?
The web chat interface of DeepSeek is limited by the absence of features such as voice search, advanced personalization, and a more refined user experience compared to other AI chat assistants. Given the rapid advancements in the AI sector, it is likely that these features will be integrated in the near future.
What is DeepSeek most effective for?
DeepSeek is certainly worth exploring for coders, researchers, and technical users. Its reasoning capabilities, web search functionality, and file processing make it a formidable AI for structured tasks. If it continues to evolve, it has the potential to become a more significant in the AI landscape.
What is its impact on hospitality industry?
DeepSeek-V3 can significantly enhance the hospitality industry by improving customer service through AI-powered chatbots and personalized recommendations, streamlining operations with automated booking and dynamic pricing, and optimizing guest experiences with virtual concierge services and feedback analysis. It also supports data-driven decision-making, cost reduction, and sustainability initiatives, while enabling targeted marketing and crisis management. By leveraging its advanced AI capabilities, DeepSeek helps hospitality businesses boost efficiency, guest satisfaction, and revenue growth.
DeepSeek is not only transforming the tech world but also holds the potential to redefine industries such as hospitality. As the AI revolution continues to unfold, DeepSeek’s impact will likely expand, driving new opportunities for businesses to leverage AI in ways that were previously unimaginable.
