Due to its impact, the world’s 500 richest people collectively lost $108 billion, the stock market experienced a significant crash known as “Black Monday,” and technology companies began to worry about their future. All of this stems from the launch of a new neural network called DeepSeek, which has dominated the news.
In this article, we explore what DeepSeek is, why it has caused such a stir in the tech industry, and why its adoption is expected to become crucial. We also evaluate DeepSeek’s performance on various marketing tasks and compare its results with those of ChatGPT to better understand its capabilities.
What is DeepSeek?
DeepSeek-AI is a Chinese company specializing in the development of advanced AI technologies and large-scale language models (LLMs). Its main product is the DeepSeek chatbot.
The startup was founded in late 2023 by Liang Wenfeng, the former head of the High-Flyer hedge fund. According to Western media, he used artificial intelligence to predict market trends.
Like ChatGPT or Gemini, DeepSeek is trained with textual data (books, articles, dialogues). Depending on the version, the model can be adapted to solve specific tasks, such as generating a response to the user, solving mathematical problems, or writing sales texts.
In addition, DeepSeek predicts the best response options using patterns learned during training. The model takes into account the context of the conversation (previous responses), the semantics of the query (the user’s hidden intentions), and the accuracy of the information, eliminating errors with filters.
Recently, the company introduced two new models:
1. DeepSeek-V3 — Introduced in December 2024. It uses the same algorithms as ChatGPT: it generates text and answers questions. During testing, the model outperformed systems such as Meta’s Llama 3.1, OpenAI’s GPT-4o, and Anthropic’s Claude Sonnet 3.5. What particularly surprised experts was the developers’ claim that the model took only two months and $5.5 million to train, while GPT-4 required more than $100 million.
2. DeepSeek-R1 — Introduced in January 2025. This advanced AI model is capable of reasoning, constructing logical chains, and independently verifying its conclusions, including intermediate ones. It can even pause to think about its answer. In several tests, R1 showed better results than OpenAI’s o1 neural network. According to the developers, the model solves math, programming, and logic tasks as well as, and in some cases better than, its competitor. While the o1 version of ChatGPT is only available by subscription, DeepSeek-R1 offers users several free trials.
DeepSeek also supports internet search (search button) and can display code within the chat interface.
How DeepSeek Has Affected the Stock Market
DeepSeek was the cause of “Black Monday” on the stock market. Bloomberg reports that on January 27, tech company stock prices fell due to the success of the new neural network, and the world’s 500 richest people lost $108 billion.
The Nasdaq 100 Index fell 3% due to the Chinese startup’s success. This led to a loss of nearly $1 trillion in market capitalization for companies within the index, according to Bloomberg.
Shares of Microsoft, Tesla, Nasdaq, and Broadcom fell, shares of Nebius Group (formerly Yandex N.V.) fell 37%, and NVIDIA, a leading supplier of chips for artificial intelligence, was particularly affected. The company lost nearly $500 billion in market capitalization. However, NVIDIA acknowledged DeepSeek’s achievements and called the neural network “an excellent breakthrough in the field of artificial intelligence.”
Nevertheless, the Wall Street Journal considers the market decline to be a temporary situation. According to journalists, one startup will not sink the US tech giants.
Despite the market situation, ChatGPT remains calm. It responds that it views the new neural network without concern and does not believe that its competitor will be able to replace it.
Why DeepSeek Became a Sensation
The DeepSeek model is being actively discussed due to its low cost. Many have become accustomed to thinking that training neural networks requires huge investments.
DeepSeek has debunked the myth that large investments are necessary for neural networks. The company revealed that training its new models cost $5.6 million — much cheaper compared to the $100 million to $1 billion range mentioned by Anthropic’s CEO last year.
The new neural network has raised several important questions:
- If DeepSeek achieved such results after spending only a few million, why do other neural networks require billions?
- How objective are the current valuations of companies involved in AI technologies?
- Are expectations about the future of Western technology corporations overvalued?
Despite this, Bernstein analyst Stacy Rasgon considers the data on DeepSeek’s low costs to be “extremely misleading.”
How to Register on DeepSeek
1. Visit the website or download the app. DeepSeek is currently available:
2. If you are using the web version, click the Get Started button to begin:
3. After that, the website will redirect you to the registration page. Now, you need to enter your email address and create a password. An access code will be sent to your email address. After entering the code, the registration will be complete, and you can start using the service.
However, we were only able to register on the second day of trying. On January 27, DeepSeek temporarily suspended registration outside of China due to an increase in new users. The reason was a major cyberattack on the service.
Our first attempt to use DeepSeek was also unsuccessful: the service tried to load a response for 3 minutes before displaying an error.
Realizing that thousands of users were trying to test the new “Chinese wonder” at the same time as us, we waited a while, and it helped — soon, the neural network was back to normal.
DeepSeek vs ChatGPT: Comparison
Here are our observations based on our perception and experience using DeepSeek.
1. Origin and Accessibility:
- DeepSeek is a Chinese AI model that has gained attention for its affordability and accessibility in regions where services such as ChatGPT may be restricted. It works without VPNs and supports users in countries such as Russia, where OpenAI’s ChatGPT may face restrictions.
- ChatGPT, developed by OpenAI, is a US-based model widely known for its versatility and consistent updates, with features such as internet integration, document processing, and more. However, access to it may be limited in certain regions.
2. Performance and Use Cases:
- DeepSeek performs well on tasks that require reasoning, such as problem solving and decision making. However, its responses can sometimes be overly verbose and not as polished as ChatGPT’s, especially in customer service contexts.
- ChatGPT tends to generate more natural, concise, and clear responses, making it more suitable for tasks such as customer service, creative writing, and general inquiries. It also processes tasks more efficiently.
3. Cost:
- DeepSeek was noted for its low-cost model compared to other advanced AI systems. Training its models cost around $5.6 million, a fraction of the costs incurred by models such as GPT-4.
- ChatGPT, particularly GPT-4, is a premium product with a significant investment in its development and maintenance. Users often need to pay to access advanced versions, which increases the total cost.
4. Regional Availability and Limitations:
- DeepSeek is more readily available in regions where OpenAI models may be restricted, and it is free in most cases. However, like many newer models, there are still some concerns about stability and accuracy.
- ChatGPT has broad adoption globally, but may be subject to restrictions and subscription fees in certain locations. Despite this, it is more stable and has a longer history of updates and refinements.
5. Integration and Customization:
- DeepSeek is still evolving and may require more manual adjustments and customization to meet specific user needs. For example, customer support-related tasks may require extra effort to refine their tone and response length.
- ChatGPT, on the other hand, benefits from a broader ecosystem of integrations, such as API support, and has a more established community of users and developers creating various use case-specific solutions.
Conclusion
DeepSeek has made a big impact on the market and made the world’s richest people realize its effect.
But for users, the new neural network is far from perfect: many requests are handled more effectively and flawlessly by ChatGPT. However, it is important to remember that DeepSeek is just beginning its journey, and its creators will correct all inaccuracies in the future.
DeepSeek may drive the development of other neural networks, which will seek to improve in order to surpass the new competitor. This means that the AI market will continue to evolve, and we will receive increasingly advanced tools that will make our work much easier and more efficient.