The new player in market: DeepSeek vs Open AI

Table of Contents

    DeepSeek AI: The potential opponent

    AI has been progressing at a very rapid rate and ever since the launch of Open AI’s CHatGPT model, it has been a very dominant player in the market. Following a few years into this LLM AI Models we have come quite far from where we initially began, a new AI is popping up every now and then, but this time the Deepseek AI has shook the world and mostly the US based AI companies. Deepseek R1 is a new contender that emerged in the past week and it has been challenging the existing market structure and not to mention that it is redefining the industry norms as a whole.

    In brief the DeepSeek AI is a Chinese startup which has made quite the noise in the AI community with its innovative approach to AI language models and the open-source development scene. The immaculate resources at our disposal is ever so increasing day by day and this blog we will be discussing only about two AI models, out there exists AI models that have been fan favourites like the smart Claude AI which also made a huge uproar in the community, but about that in a different blog. Let’s dive into the new DeepSeek AI first and explore the unique attributes of DeepSeek and its competition with the market giant OpenAI.

    Understanding the differences in AI Models

    Before we dive into the blog, let’s quickly take a detour and understand what makes the AI models different and how it works.  The AI models come in various forms with each serving a different purpose, which means that AI is everywhere you can think of technologically but the only difference being observed is that the newer interactive AI has been getting a lot of attraction. So, for now let’s just look into two of the most significant AI model types that ill help you understand Open AI and DeepSeek R1 models.

    Large Language Models (LLMs)

    So, the first is the LLM model or the Large Language Models. Basically, these models are designed to process and generate human-like text based on the series of keywords that you provided in the prompt. Like if you were to tell Chat GPT to write you a paragraph about AI, it is most likely to give you a series of sentences that resembles and explains the topic ‘AI’. These models usually they are trained on massive datasets to perform tasks such as translation, summarization, and creative writing in a most human- like format to make the user feel more comfortable and help in the ease of understanding. If you remember the early days of chat GPT model, that is what an LLM looks like.

    Reasoning Models

    Coming to the reasoning AI Models, unlike the get-go friendly general-purpose LLM AI Models, reasoning models focuses more on logic-based tasks, such as mathematical problem-solving, scientific reasoning and complex programming solutions. These Models are trained to be able to reason their course of action and to give output in a manner that will delight the user. If you were to ask what is 2+2 to these models the most obvious answer is 4 which is pretty simple. But if you were to ask it more complex questions like suppose a programming solution, this is where these models shine as they will start the process of solving it like a human would with the thought process ‘ what if I took this as the place holder for the missing X for the time being and what if I find out the missing numbers first to go on with this solution’. These models are trained to imitate the thought process of a human to generate the most accurate answer.

    Open AI’s Chat GPT 4 and the new DeepSeek R1 are an example of such reasoning models. DeepSeek has positioned itself as a pretty strong contender in this domain, demonstrating superior performance in tasks that require structured reasoning and analytical skills which is why it is causing the uproar.

    A Disruptor in the AI Market

    Now that we understand the basics of AI models largely being hyped up, no doubt the new DeepSeek has positioned itself in this domain with rather quite the hype. This  AI is as good or even outperforming the long standing Open AI’s Models but interestingly it‘s also a very cost-effective and open-source alternative to other proprietary AI models. Unlike many industry giants that have invested billions into the development of their AI model, the startup DeepSeek has demonstrated that high-quality AI can be built efficiently without the unusually high operating costs. This reminds me of the Iron Man scene where the competition is trying to build the iron man suit but miserably failing meanwhile, Tony Stark casually building it in a garage with scrap materials.

    Similarly, its flagship model, the DeepSeek-R1, has been developed at a fraction of the price of leading competitors while also maintaining impressive performance if not better in many areas but particularly in the mathematical problem-solving and coding tasks as this is an AI trained to perform such tasks.

    Key Features and Strengths

    The juicy part of the blog is where we present the key features and strengths of the AI model. Let us dive right in.

    Efficiency and Cost-Effectiveness

    The foremost thing that strikes one about DeepSeek is its ability to provide real heavy-duty AI capability at a fraction of a cost ordinarily required for running such expensive high-end models. The startup has achieved this with the assistance of optimized algor

    ithms and innovative training techniques that not only offer less expensive solutions but also result in agile and efficient AI.

    For example, considering mobile games like PUBG Mobile (BGMI), they are designed to run smoothly on a wide range of smartphones by optimizing performance and maximizing the available processing power while taking care to conserve battery performance. Similarly, the architecture of DeepSeek’s AI model was inclined to deliver very keen abilities at a cost much lower than the GPT-4. While OpenAI’s proprietary application models are still reigning supreme in some general AI tasks meaning ‘Multitask Language Understanding (MMLU)’ problem-solving solutions, DeepSeek, in a sense, takes a direct approach that points out how AI can actually be efficient while at the same time being stricken off with the need for massive financial resources.

    Open-Source Advantage

    Allied to its competitors in the AI domain who are very keen on protecting their models with proprietary barriers, the open-source journey adopted by DeepSeek stands a great head-up. This would mean that developers all over the world can access, modify, and integrate the model into their applications and programs. Such kind of business model works since it does not just create a lean model; it nurtures innovation and collaboration from hundreds of millions of developers who are finally behind the meaning of a great AI product.

    Performance in Specific Areas

    As mentioned earlier, the models of OpenAI are better in broad language understanding and have the capability to do much more than the DeepSeek R1 model in a lot of areas such as paragraph generation, text-based solutions or even in the overall conversive situation, DeepSeek has demonstrated particular strengths, particularly in the problem-solving domain, notably in mathematical reasoning and code generation of certain popular languages like the Rust.

    The Benchmark comparisons have proven that DeepSeek’s models are on par with or even surpass some of the OpenAI offerings in the niches as discussed, which is the reason behind the over-hyped situation and makes most of the creators, developers outright declare that ‘Open AI should be scared right now’.

    Is DeepSeek a new rival for the Open AI?

    Now this is where we get to the possibilities of why everyone says that Open AI needs to be prepared.

    It was an early bird in the market, with advanced models such as GPT-4 that was widely used for daily operations of various industries; however, this has all been changed with DeepSeek and sparked conversations on whether AI is or will be made accessible in future due to competitive pricing and performance. If we discussed the business model of OpenAI, it is a more closed, commercialized approach that provides access through APIs and partnerships. In contrast, DeepSeek has chosen to follow an open-source distribution model for maximal transparency and collaboration.

    Cost of Development

    OpenAI commits considerable investment into the development of its models, while DeepSeek has managed to achieve a comparable model at a small fraction of this investment. The DeepSeek’s R1 model has been developed by keeping in view efficiency and cost-effectiveness that is pretty self-explanatory; the company has reported that the training of DeepSeek-R1 required less than $6 million in computing resources like already mentioned utilizing innovative training methods and optimized algorithms to achieve high performance without incurring substantial expenses. This being said, the development costs for OpenAI’s GPT-4 model are much more intensive, and its training costs were estimated to fall in the ballpark of $78 million, taking into account all the heavy computations and large datasets.

    Focus on Performance

    DeepSeek stands out in special-purpose reasoning and highly computation-intensive jobs, whereas the models from OpenAI excel at general language processing.

    Reaction by Apple and the Industry

    DeepSeek’s rise has caught the attention of industry tech giants, including Apple CEO Tim Cook, who acknowledged the model’s role in driving AI efficiency. This could mean like a possible collaboration with the new AI, while Apple has yet to announce any official partnership with DeepSeek, Cook’s remarks hint at a growing interest in leveraging alternative AI models beyond OpenAI’s ChatGPT into their own systems as well.

    The Effect on the Future of AI

    DeepSeek’s entry into the AI space clearly is a message that innovation does not have to cost. It should affect how future AI models are built and priced to be sold.

    DeepSeek’s promise of cheaper and more accessible AI solutions has caught the eyes of the big names, including Apple and various enterprise leaders. This latest trend essentially prompted the incumbents to rethink their strategies and become more competitive in terms of offerings and AI efficiencies.

    The AI community itself is divided regarding DeepSeek’s approach: OpenAI has criticized DeepSeek of distilling-the training of AI models by querying an existing model-may raise ethical concerns. However, this has not been a deterrent to businesses and developers from viewing DeepSeek as an alternative.

    Conclusion

    DeepSeek is more than just another entrant on the AI market; it represents a fundamental shift in developing, sharing, and using AI. In a project that questions the traditional business model and looks toward accessibility, DeepSeek may potentially redefine the AI landscape for years to come.

    For developers, business people, and AI enthusiasts, seeing the advances of DeepSeek is going to be critical. As competition heats up in the AI sector, one thing is clear: innovation is only going to increase in tempo.

    Leave a Reply

    Your email address will not be published. Required fields are marked *