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The global AI industry is buzzing with the latest entry of DeepSeek R1 AI. This groundbreaking Chinese AI model has not only disrupted the stock market but is now posing a formidable challenge to the well-established AI search engine ChatGPT.
With the recent news of US President Trump building the largest AI project Stargate, DeepSeek’s entry into the AI world is no surprise. Seems like the DeepSeek R1 release was waiting for the Stargate news, thereby shocking all its investors and founders.
Let’s learn more about this ChatGPT alternative that is making waves around every corner of the world.
Table of Contents
About DeepSeek
| Founded: | May 2023; 1 year ago |
| Founder: | Liang Wenfeng |
| Headquarters: | Hangzhou, Zhejiang, China |
| Owner: | High-Flyer |
Who is Liang Wenfeng?
Liang Wenfeng has no Artificial Intelligence background and graduated from Zhejiang University. In 2023, he founded DeepSeek funded by the Chinese hedge fund High-Flyer, and is also the CEO of the company.
DeepSeek poses a bigger challenge to big tech companies that are losing their share values.
DeepSeek R1 chatbot is open source and is available for use to everyone just like ChatGPT.
Nobody believed Liang when he bought Nvidia chips to build his own AI cluster which could be used for trading. Some say he bought almost 10,000 Nvidia GPUs before the US restrictions on exporting AI chips to China.
Liang Wenfeg’s Net worth
We are not sure about his Net worth but it is in billions of dollars.
About High-Flyer
High-Flyer was founded in 2016 and later in 2019, the company was established for trading leveraging AI algorithms.
DeepSeek Releases Till Now
| 2 November 2023 | DeepSeek-Coder |
| 29 November 2023 | DeepSeek-LLM |
| April 2024 | DeepSeek-Math |
| May 2024 | DeepSeek-V2 |
| December 2024 | DeepSeek-V3-Base and chat model DeepSeek-V3 |
| 20 November 2024 | DeepSeek-R1-Lite-Preview |
| 20 January 2025 | DeepSeek-R1 and DeepSeek-R1-Zero |
Stock Market Turmoil: Big Tech Giants Feel the Heat
The global stock market saw some serious share declines in major tech companies including Nvidia, Microsoft, and Alphabet.
Nvidia worth 2.90 Trillion USD, saw its stock value plummet by 17-18%, wiping over $600 billion from its market capitalization.
Microsoft, worth 3.23 Trillion USD and a key player behind OpenAI’s ChatGPT is down by up to 2%.
Alphabet, worth 2.36 Trillion USD, and Google’s parent company experienced a 4% decline in its stock prices.
The DeeSeek R1 launch effect was not only on international companies but even Nifty fell sharply by 3.35%.
DeepSeek AI vs ChatGPT: A New AI Search Rivalry
DeepSeek R1 chat model is the highest-rated free app on the Apple store surpassing ChatGPT but does it function as accurately as ChatGPT?
Unlike many proprietary models, DeepSeek launched open-sourcing R1. Thus, allowing AI developers and coders to access and use the code for any application.
DeepSeek is reported to have used fewer resources compared to mega AI companies. It used only 2000 Nvidia ICs whereas major tech companies in AI have used over 16000 chips.
When it comes to training cost, even here it is said to be much cheaper than others. In comparison to Meta, DeepSeek is 10 times cheaper with a 55 days training cost of $5.58 Million.
An Alarm for AI Writing Apps?
DeepSeek’s R1 launch has set the stage for intense competition in the AI writing market. As ChatGPT continues to dominate with its robust ecosystem, seamless integrations, and widespread user base, DeepSeek offers an open-source alternative that could democratize access to advanced AI capabilities.
For now, the rivalry between DeepSeek AI and tools like ChatGPT is more than a contest of technological prowess—it’s a battle over the future of AI development, ethics, and accessibility. The coming months will reveal whether DeepSeek’s cost-efficiency and transparency can sustain its momentum against the established giants of the industry.
Conclusion: How Deep is AI?
DeepSeek’s cost of training at only $6 million compared to billions spent by its competitors is quite surprising. Thus, raising the bar high and all eyes are now on the Chinese AI revolution that’s going to impact the whole world.
The alarm bell in the Open AI office is ringing and triggering the investors to reassess their AI strategies. One thing’s for sure AI is not stopping anywhere and there will be new players coming up.
How can India be behind in the AI industry?
There have been rumors about Mukesh Ambani building the largest AI infrastructure in India. This is in collaboration with the largest chip manufacturing company in the world Nvidia
FAQs | DeepSeek R1
Is DeepSeek free?
Yes, it is an open-source chat bot free to use for everyone.
What is Liang Wenfeng’s Net worth?
According to the Chemical City Paper website, the net worth of Liang Wenfeng is 3.2 Billion dollars.
Who owns DeepSeek AI?
Liang Wenfeng the co-founder of hedge fund High-flyer is the founder and CEO of DeepSeek AI.
