DeepSeek explained: Everything you need to know

https://www.techtarget.com/whatis/feature/DeepSeek-explained-Everything-you-need-to-know

DeepSeek, a Chinese AI firm, is disrupting the industry with its open-source, low-cost large language models. Its R1 LLM, launched on January 20, 2025, cost under $6 million to develop—far cheaper than competitors. The model quickly topped Apple’s App Store, triggering a stock market sell-off that hit Nvidia, Microsoft, and Meta.

Founded in 2023 under High-Flyer, DeepSeek challenges OpenAI’s high-cost, proprietary model with efficient, open-source AI. Despite U.S. chip restrictions, it developed advanced AI using reinforcement learning. Analysts call this AI’s "Sputnik moment," signaling a shift in global competition.

Governments, including the U.S. Congress and Pentagon, have banned DeepSeek over data privacy concerns. A cyberattack and a database leak further raised security red flags. Despite this, DeepSeek is reshaping AI by making powerful models cheaper and more accessible.