DeepSeek AI: Revolutionising the AI Landscape and Generating Revenue
So, I think we can all agree that this is an incredibly exciting time for businesses. We’re told that productivity tools are more accessible, economical and delivering greater returns. I’m keen to pause, just for a moment, and look at DeepSeek as the latest phenomenon.
History of the Company
Founded in May 2023 by Liang Wenfeng, DeepSeek AI emerged from the innovative environment of Hangzhou, China. Initially funded by the hedge fund High-Flyer, DeepSeek was established with a mission to develop cutting-edge AI models at a fraction of the cost incurred by its competitors. This unique funding model allowed DeepSeek to prioritise long-term research and development without the pressure of immediate returns.
Growth
DeepSeek’s journey began with the release of DeepSeek Coder in November 2023, an open-source model designed for coding tasks. This was followed by the launch of DeepSeek LLM, a 67B parameter model aimed at competing with other large language models. The company’s growth trajectory continued with the release of DeepSeek-V2 in May 2024, which gained significant attention for its strong performance and low cost.
By January 2025, DeepSeek had released its first free chatbot app, DeepSeek-R1, which quickly became the most-downloaded free app on the iOS App Store in the United States.
Recent Developments
In recent days, DeepSeek has continued to make headlines. The release of DeepSeek-R1 has not only disrupted the AI market but also caused significant financial ripples, including a notable drop in Nvidia’s share price. This success has positioned DeepSeek as a formidable competitor to established AI giants like OpenAI, Google, and Microsoft.
Methods of Generating Revenue
Despite offering its models for free, DeepSeek has developed several revenue streams:
- API Monetisation: DeepSeek offers an API endpoint for running its models, which is priced competitively to attract a large user base.
- Quantitative Trading: Leveraging its roots in High-Flyer, DeepSeek continues to generate revenue through AI-driven trading algorithms.
- Efficiency and Cost Reduction: By developing models that require fewer resources, DeepSeek can operate at lower costs, allowing it to monetise at scale without high prices.
DeepSeek vs. Competitors
When compared to competitors like Microsoft’s Copilot, DeepSeek stands out for its cost-efficiency and open-source approach. While Copilot and other AI tools from OpenAI and Google offer robust performance, they come with higher costs and proprietary restrictions. DeepSeek‘s models, on the other hand, are designed to be accessible and affordable, making advanced AI capabilities available to a broader audience.
User Data and Privacy
One of the critical concerns with AI tools is data privacy. DeepSeek collects extensive user data, including keystrokes, device information, and chat history. This data is stored on servers in China and is subject to local laws, which may require the company to share data with the government. Users should be aware of these privacy implications when using DeepSeek‘s services. Terms and conditions will change so please read the small print.
Productivity and Economic Impact
AI tools like DeepSeek have the potential to significantly increase productivity across various sectors. By automating repetitive tasks and enhancing decision-making processes, AI can free up human workers to focus on higher-value activities. The impact of AI on productivity can be observed through several indicators:
- Company Valuations: Companies that effectively integrate AI into their operations often see a boost in their market valuations.
- Stock Market Performance: The stock prices of companies investing heavily in AI tend to reflect the anticipated productivity gains.
- Business Surveys: Surveys and reports from organisations like McKinsey and KPMG highlight the growing adoption of AI and its positive impact on business performance.
In conclusion, DeepSeek AI is not just another player in the AI landscape; it is a disruptive force that is challenging the status quo with its innovative models and cost-effective solutions. As AI continues to evolve, tools like DeepSeek will play a crucial role in shaping the future of productivity and economic growth.
Liang Wenfeng
“For researchers, the thirst for computational power is insatiable. After conducting small-scale experiments, there’s always a desire to conduct larger ones. Since then, we’ve consciously deployed as much computational power as possible.”
So, that’s the rollout plan – keen to know your thoughts, please comment below.