DeepSeek: An AI Challenger or Just Hype?

 By Nadim Kahwaji

Artificial intelligence is evolving at breakneck speed, and DeepSeek is now in the spotlight. Founded in 2023, this Chinese AI company aims to challenge established leaders such as OpenAI’s ChatGPT and Google’s Gemini. Yet despite the buzz, users may want to try DeepSeek alongside these proven tools to see which is best suited for their needs.

Rapid Rise and Market Reaction:

DeepSeek’s AI assistant app quickly climbed to the top of the U.S. Apple App Store, even surpassing ChatGPT at one point—suggesting high public interest. However, it’s uncertain whether this initial surge will translate into sustained impact.

Financial markets also took note: NVIDIA, one of the world’s most valuable tech companies, saw over $600 billion in market value wiped out following DeepSeek’s debut. Still, many question whether DeepSeek can truly match or outperform Western AI giants, especially as its real-world efficiency remains under scrutiny.

DeepSeek-R1: A New Era in Reasoning AI?

DeepSeek-R1 emphasizes advanced reasoning rather than simple pattern recognition. Many experts believe the future of AI lies in models capable of logical deduction, complex problem-solving, and multi-step thinking.

Training Data for Reasoning Models
Reasoning AIs rely on specialized datasets that emphasize logic, problem-solving, and mathematics, such as:

• GSM8K

• MATH

• BigBench (BBH)

• Codeforces & HumanEval

By training on these datasets, DeepSeek-R1 aims to excel in structured analysis and deeper comprehension.

How Does DeepSeek-R1 Compare?

DeepSeek claims its R1 model can match or surpass other leading reasoning AIs in math, coding, and logic-related benchmarks—all while using lower-spec hardware at a fraction of the cost. While GPT-4 reportedly cost over $100 million to train, DeepSeek cites a mere $5.6 million. If accurate, such efficiency could reshape AI development strategies.

However, U.S. export restrictions currently limit China’s access to top-tier American GPUs. Consequently, DeepSeek relies on tailored hardware with lower specs, making direct comparisons to Western AI systems challenging.

 Open Source, Local Installation—and Additional Moderation

Unlike OpenAI’s more proprietary approach, DeepSeek offers lighter, open-source versions for local use. This can make cutting-edge AI more accessible—though hardware requirements still matter:

• DeepSeek 7B Model: Runs on a high-end gaming PC, suitable for casual chatting, text-based tasks, and lightweight AI applications.

• DeepSeek 33B Model: Requires robust GPU resources; ideal for coding, logic-driven tasks, and more complex interactions needing higher accuracy.

• DeepSeek-R1 Full Model: Designed for large-scale enterprise applications and advanced problem-solving; demands server-grade hardware to perform effectively.

Censorship in Cloud-Hosted Versions

Using the cloud-hosted or phone-app versions of DeepSeek-R1 comes with added moderation tied to local regulations in China. As a result, the model will not generate responses on certain politically sensitive topics (e.g., Tiananmen Square, Taiwan’s autonomy). This moderation layer applies only to the cloud-based services; local installations run outside of China remain unrestricted.

Advantages of Running DeepSeek Locally

• Privacy: Keep data on-premises without sending it to external servers.

• Transparency: Inspect how the model functions and fine-tune it for specific needs.

• Cost Savings: Eliminate ongoing API fees and subscription costs.

• Customization: Adapt or modify the model’s behavior to fit specialized tasks.

Note that running these open-source versions requires substantial VRAM, and performance may differ from cloud-hosted services.

 

Conclusion

DeepSeek has quickly risen to prominence, but its true staying power will be determined by practical testing and sustained performance. Its open-source, lower-hardware approach is especially notable in light of U.S. export restrictions on cutting-edge GPU technology. However, the additional moderation in its cloud-hosted service highlights the importance of carefully considering how and where to deploy DeepSeek. For now, it’s wise to compare DeepSeek alongside proven solutions like ChatGPT, Google’s Gemini—to see which best aligns with specific use cases. Only time will tell whether DeepSeek becomes a genuine market disruptor or another fleeting addition to AI hype.