DeepSeek, the latest AI brainchild from a Chinese startup, is making waves. This model promises high-end performance without the jaw-dropping price tags of giants like ChatGPT and Google’s Gemini. But what’s got everyone talking? And how did it stir up a frenzy in the US stock market? Let’s check out the story behind the buzz.
What’s Going Down?
DeepSeek is claiming they built an R1 model for under $6 million, and on top of that, it allegedly outperforms ChatGPT. That’s quite bold. Naturally, this announcement caused serious ripples in the US stock market, knocking down Nvidia, ARM Holdings, Broadcom, and Microsoft stocks. Even Bitcoin couldn’t escape the chaos and dropped back below $100,000.
Additionally, DeepSeek has stirred up quite a buzz on X (formerly known as Twitter), with users spinning all sorts of wild theories about it dethroning ChatGPT and Gemini. Even Sam Altman, OpenAI’s CEO, couldn’t sit this one out. He chimed in, and here’s what he had to say:
deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price.
we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases.
— Sam Altman (@sama) January 28, 2025
But here’s the twist: DeepSeek might not be directly connected to the above brands’ AI offerings in this price drop. Instead, today’s stock slump seems to be indirectly linked to the Chinese startup. Why? Well, DeepSeek’s new, cost-effective AI model has made waves by being cheaper but as powerful as ChatGPT and Google Gemini.
Then why the 7% dip? That’s because investors are starting to rethink their investments in millions-worth high-end Nvidia GPUs when they could’ve been doing this on a budget.
What is DeepSeek?
DeepSeek is the new kid on the AI block, ready to give ChatGPT a run for its money. The company launched its R1 model last week and in a conversation with the Wall Street Journal, they proudly shared how cheap it is to run. This R1 model is said to rival ChatGPT’s O1 in terms of handling everything from math to coding to reasoning. It’s an open-source model, so it can handle complex tasks, but don’t bother it with political questions—that’s off-limits.
Here are a few questions I tossed at both DeepSeek and ChatGPT. Let’s see what they had to say.
I asked, “What prohibitions has China imposed on its people?” First up, DeepSeek’s response, followed by ChatGPT’s take.
So, it’s obvious that ChatGPT went above and beyond with a more detailed answer, while DeepSeek kept things a bit too vague—almost like it’s trying to avoid spilling the beans on China.
I also asked, “What happened at Tiananmen Square on June 4, 1989?” DeepSeek’s answer was… well, let’s say it raised some eyebrows. Here’s what ChatGPT had to say instead:
It’s pretty evident how cagey DeepSeek gets, especially when it comes to anything related to its home country. It looks like this AI chatbot has been trained to keep China’s secrets safe—if you ask about the country, it suddenly goes mute.
In addition to all of this, DeepSeek has rolled out the Janus Pro 1B and Janus Pro 7B models. These got launched on Hugging Face Monday, all while a cyberattack was making headlines. The Janus Pro are multimodal large language models (LLMs) that can juggle image generation and vision processing. Much like DALL-E 3, you toss in an input prompt, and voila! Janus Pro delivers a perfectly matched image.
As for the pricing of DeepSeek, take a look at the image below to see how the prices are:
To access it, search for DeepSeek on your favourite browser and hit ‘Start Now.’ Log in with your chosen account, enter your password, and you’ll be taken to their website. I tried a few times this afternoon, but the servers were swamped due to the cyberattack it encountered. The website has also given a notice and while one of my colleagues couldn’t access registrations, I finally managed to get through and used it thoroughly for a detailed understanding.
What Makes DeepSeek a Threat to ChatGPT and Gemini?
Artificial Intelligence has been making waves in the tech world for a while now. Smartphone and laptop brands, along with tech giants, have jumped on the AI train, adding features that make everything run more efficiently.
Now, we have AI chatbots like ChatGPT and Gemini, which use large language models (LLMs) to answer your questions and do some heavy-duty work. But here’s the catch: most of their best features are locked behind a subscription paywall. That’s where DeepSeek comes in—handling complex tasks without demanding your wallet. Plus, it’s built on an R1 model, which is a steal compared to ChatGPT and Gemini’s eye-watering costs.
This could lead to users slowly migrating from AI chatbots like ChatGPT and Gemini to DeepSeek—because who doesn’t love a bargain?
Of course, DeepSeek comes from China, which raises a few eyebrows regarding privacy and security. So, while it might be the cheaper, more appealing option, it’s not exactly a fortress of safety. We also don’t know if this model remains this cheap forever. As for the future of ChatGPT and Gemini, it’s looking a little dim. But hey, we’ll see how it all plays out. Stay tuned to MySmartPrice for the latest scoop on this evolving AI drama!
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