OpenAI is a globally recognized AI company that pioneers natural language processing and machine learning, creating powerful AI models such as ChatGPT, GPT-4, and DALL-E. Now, OpenAI has launched CHATGPT Gov for the US Govt—agencies due to the threat from Chinese AI Companies.
DeepSeek is an emerging AI technology that uses deep learning and neural networks. This platform is similar to ChatGPT, Gemini, or Meta AI. This platform is especially for people who want to simplify their work with the help of advanced AI tools.
But on 27 January 2025, the news came that American Stocks hit many companies, which the question was raised on the future of companies like NVidia or Meta, NVidia’s Stocks suffered a loss of $600B, and other companies like Tesla, Microsoft, and Google also fell or all this happened because of a Chinese platform DeepSeek.
DeepSeek vs OpenAI: what are the differences?
DeepSeek has quickly established itself in the artificial intelligence (AI) industry within days after its launch, even surpassing ChatGPT DeepSeek is the Top 1 on App Store Free Apps worldwide after TikTok number one downloaded, and ChatGPT on number two. The Chinese-made AI app has even attracted the attention of US President Donald Trump, who – while settling back into life in the White House – has said DeepSeek’s success should be a “wake-up call” to developers in the States.
DeepSeek New Model R1 reportedly beats OpenAI’s best Models in most metrics, The DeepSeek-R1 model is open source and users can even download and run the model locally it has Cross-platform compatibility and works on Windows, macOS, and Linux with any custom additions they like, With Ollama, you can easily download and run the DeepSeek-R1 model.
First, you’ll need to download and install Ollama. Visit the Ollama website and download the version that matches your operating system, Once Ollama is installed, open your terminal and type the following command to download the DeepSeek-R1 model, After downloading, verify the installation by running
Now, let’s start the model using the command, And just like that, you’re interacting with DeepSeek-R1 locally. It’s that simple!
DeepSeek is More Budget-Friendly than OpenAI
OpenAI seems to have invested tens of millions of dollars in training each of its models while DeepSeek claims trained its model for a little over $5.5 million. DeepSeek-RI starts at $0.14 for one million tokens or roughly 750,000 words. DeepSeek’s latest model is reportedly closest to the OpenAI o1 model, priced at $7.50 per one million tokens.
OpenAI’s chatbot still excels in more conversational or creative output as well as information relating to news and current events, and DeepSeek is superior to ChatGPT for more technical tasks. If you use DeepSeek chatbots for logical reasoning, coding, or mathematical equations, you might want to try DeepSeek because you might find its outputs better.
Even being on equal footing is bad news for OpenAI and ChatGPT because DeepSeek is entirely free for most use cases. Regular ChatGPT users may have to subscribe to its paid tier at $20 a month.
DeepSeek’s Innovative Strategy
DeepSeek is revolutionizing AI development from the beginning. Traditional AI models tend to be inefficient in their computations, often storing and processing data with excessive precision—like using 32 decimal places when only eight are necessary. DeepSeek has managed to reduce memory usage by 75% without compromising on accuracy.
The standout feature is their innovative “multi-token” system. While standard AI models analyze words at a time (“The… cat… sat…”), DeepSeek processes entire phrases simultaneously. This approach not only doubles the speed but also retains 90% accuracy. When working with billions of words, this improvement is significant.
DeepSeek’s Introduced Expert System
DeepSeek takes a different approach than the typical AI model that attempts to master everything (like a single person being a doctor, lawyer, and engineer all at once), DeepSeek’s model is made up of specialized experts that come into play when needed while traditional models utilize all 1.8 trillion parameters at once, which requires a massive amount of computational resources, DeepSeek operates with 671 billion parameters but activates only 37 billion at a time, resulting in much greater efficiency.
DeepSeek’s Results Are Mind-Blowing
DeepSeek’s model results appear almost unbelievable:
- Training cost: $100M → $5M
- GPUs needed: 100,000 → 2,000
- API costs: 95% cheaper
- Can run on gaming GPUs instead of expensive data center hardware
And It gets even better: it’s open-source! Anyone can take a look at the code and the technical documents. This isn’t some kind of magic—it’s simply smart engineering at work.
How do they make money?
OpenAI earns money by providing its application programming interface, or API, which consists of guidelines and standards that allow other software to connect with it. Businesses can subscribe to various plans that give them access to its most sophisticated AI models.
DeepSeek also earns money by doing this – but its services are significantly more affordable as compared to its competitors, and it gives away its AI for free.
Why Does This Threaten Nvidia and Big Tech?
This is a concerning situation for Nvidia. Their business strategy is built on the sale of high-priced GPUs with significant profits. However, if AI companies can achieve top-tier performance using standard gaming GPUs, Nvidia’s grip on the AI industry could weaken. DeepSeek’s research papers showed that R1 was also trained by using NVidia H800 Chips (about 2000 chips) which is a cheaper version of the Nvidia GPU
It’s not only Nvidia, Meta, OpenAI, and other AI major players that operate with massive budgets and thousands of employees while OpenAI has approximately 4000 people, DeepSeek achieved its success with a team of fewer than 200 people. Meta probably spends more money on employee salaries than DeepSeek spent in training its whole AI model.
The Future of AI: How AI Is Changing the World
AI is already powering automation and data analysis. In the future, expect widespread adoption of independent machinery and AI-powered personalization. Major companies such as OpenAI and Anthropic are not going to sit lazy. They are probably already working on integrating a similar efficiency approach. However, the efficiency revolution has begun, and there’s no turning back to the old approach of simply buying more GPUs strategy.
AI is on the edge of becoming more affordable, quicker, and easier to access than ever. The real question isn’t whether DeepSeek’s innovations or advancements will shake up the industry, but how fast the change will occur.
For more daily updates, please visit our News Section.