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DeepSeek is a Chinese company that builds powerful AI models. It is based in Hangzhou and was founded in July 2023 by Liang Wenfeng. In January 2025, it launched a model called DeepSeek R1. It is an open-source AI system that became extremely popular and surpassed ChatGPT as the top free app on Apple’s App Store in multiple countries.
In comparison to true open-source software, DeepSeek’s AI models are called “open weight”. This means they share some of their technology but do not allow full modification. The company hires AI researchers from top Chinese universities and even recruits experts from fields outside computer science to improve its AI models.
Want to know more about Deepseek’s AI model? In this article, let’s understand what is DeepSeek R1 and how it compares to other popular AI models.
DeepSeek R1 is a powerful AI model created by the Chinese company DeepSeek. You can use it on a website, in an app, or through an API. Several experts in the U.S. have praised the cost-efficiency of DeepSeek R1.
That’s because it costs less to run than similar AI models but still performs just as well or better. A study shows that it was trained in just 55 days for $5.6 million (Rs. 48.55 crores) while training GPT-4 cost about $100 million (Rs. 867 crores).
Furthermore, it is open-source and developers can customise it for special uses like education and research. Let’s gain more clarity and see what DeepSeek R1 can do:
Several studies have shown that DeepSeek excels at math and problem-solving. Also, it is cheaper and more customisable than other AI models like ChatGPT, Gemini, or Meta’s Llama.
Let’s understand in detail and compare the performance of DeepSeek R1 on several parameters:
DeepSeek R1 and other AI models, like ChatGPT, are built differently. DeepSeek R1 uses a Mixture-of-Experts (MoE) model. This means that instead of using all parts of the AI for every task, it only activates the parts that are needed.
This makes it more efficient because it doesn’t waste energy or computing power on unnecessary parts of the model.
On the other hand, ChatGPT uses a traditional transformer model. This means it uses all of its knowledge and computing power for every task. While this makes it good at understanding complex conversations, it also requires a lot more resources.
This architecture is one of the main reasons why DeepSeek can compete with large AI models while using fewer chips and spending less money.
DeepSeek R1 excels at technical tasks (especially math). It has been tested on a difficult set of 500 high-school-level math problems (MATH-500) and scored 97.3%. This is higher than OpenAI’s model (96.4%). This means DeepSeek is very strong when it comes to logic and calculations.
However, ChatGPT and Gemini are better at understanding human language and responding with nuance. This means that while using these models, you may feel more natural and engaging if you are:
Thus, if you want an AI for solving math problems, DeepSeek is likely the better choice. But if you want an AI for creative writing and deep conversations, ChatGPT or Gemini may be a better fit.
DeepSeek is open-source. This means anyone can use and modify it for free. Such flexibility allows companies and researchers to customise it for their own needs without paying huge fees.
On the other hand, ChatGPT follows a freemium model. This means you can use a basic version for free, but if you want more features or better performance, you have to pay for a subscription.
Another huge difference is in cost. Running DeepSeek is 30 times cheaper than running ChatGPT. This is because DeepSeek only needs around 2,000 chips, while ChatGPT requires 16,000 or more chips to generate a response.
4. Cost and environmental friendliness
One of the biggest advantages of DeepSeek is that it uses fewer computer resources to perform at the same level as ChatGPT. This has two major benefits:
AI models are tested using benchmarks. These are standard tests that measure how well they perform in different areas. Let’s how DeepSeek compares to OpenAI’s model in:
Conclusion
DeepSeek R1 is a cost-effective AI model launched in January 2025. It quickly became the number one app on Apple’s App Store and replaced top models like ChatGPT and Gemini.
This AI model follows a Mixture-of-Experts (MoE) architecture which makes it 30 times cheaper than ChatGPT. Also, it is open-source and can be easily customized by businesses and researchers.
Due to its several benefits, DeepSeek R1 can become the first choice in several sectors, like manufacturing, online marketplace, healthcare, banks, and NBFCs.
