Founded in May 2023 by
Liang Wenfeng, a notable figure within the AI industry and hedge fund world, DeepSeek operates independently without pressure from external investors, largely funded by the High-Flyer quantitative hedge fund founded by Wenfeng himself. This unique setup allows DeepSeek to pursue ambitious research and development in AI while building a team of exceptionally skilled graduates from top Chinese universities who prioritize technical abilities over traditional work experience.
DeepSeek made headlines with the launch of its open-source coding model,
DeepSeek Coder, and the subsequent release of the
DeepSeek LLM, which boasts a remarkable 67 billion parameters, aiming to rival the offerings of industry giants like OpenAI, Google, and Meta. What’s truly disruptive, however, is the cost efficiency of DeepSeek’s models, triggering a price war within the Chinese AI market, compelling major tech companies to lower their prices to stay competitive.
With a price tag of just $0.14 per million tokens for its
DeepSeek-R1, this startup has forced even the largest competitors to reconsider their pricing strategies. This competitive pressure is pushing the envelope on what is considered acceptable pricing in AI, thereby making advanced AI technologies more accessible. However, this accessibility raises serious ethical questions about the implications of cheap AI, particularly concerning surveillance & bias.