What is DeepSeek and How is it Different From Other AI Chatbot Models?

Since its explosive rise in 2023, generative AI has dominated headlines, attracted relentless investment, and fueled unprecedented growth. But on January 28, 2025, the AI industry faced a seismic shock—a trillion-dollar wipeout in a single day. Even tech giants like Nvidia weren’t spared. Yet, amid the chaos, optimism around AI remains unshaken. The cause? Not a market crash, but a game-changing new AI model, RI, launched by DeepSeek, a Hangzhou-based research lab, sending shockwaves through the industry.
So what is DeepSeek, and how is it different from its predecessors? Here’s everything you need to know in a nutshell.
What is DeepSeek?
DeepSeek is a Chinese AI startup that’s become a buzzword overnight in the AI world. Founded in 2023 and based in Hangzhou, the company has focused on the ambitious goal of developing and advancing Artificial General Intelligence (AGI) through open-source LLMs.
What’s really interesting is how DeepSeek managed to build a powerful AI model — DeepSeek-R1 — at a fraction of the cost of its competitors. While OpenAI reportedly spent around $100 million to train GPT-4, DeepSeek pulled off something similar for just $6 million. Their secret? A technique called “mixture of experts” makes their AI more efficient by only activating the necessary computing power for each task.
In January 2025, DeepSeek launched a free chatbot app based on DeepSeek-R1 for iOS and Android. Almost overnight, it shot to the top of the App Store charts, even surpassing ChatGPT, becoming the most downloaded free app in the United States. The impact was huge—so much so that Nvidia’s stock took a hit as investors realized that AI development might not be limited to just the big tech giants anymore.
6 Key Differentiators for DeepSeek

Any kind of technology disruption is rooted in the end-user. Only when end-users embrace a particular model or technology can it disrupt the market like DeepSeek has. So, how is Deepseek different, and what gives it the edge and the approval of end users?
- DeepSeek is Free: One of the first questions Indians are asking: Is Deepseek free? Yes, unlike competitors that have a basic free version, DeepSeek-R1 is completely free. Users are not expected to subscribe to access the high-end or sophisticated applications of this AI model at the moment.
- DeepSeek Closely Mimics Human Thinking: One of the signature features of this new AI chatbot is that it gives reasoning for its answer to a prompt before the actual answer. This is a step in the right direction for Gen AI models as it gives the user a chance to validate or reject the reasoning for a response and can be used for more sophisticated analysis.
- DeepSeek is Open-Source: Being an advanced MIT-approved open-source model, DeepSeek allows smaller AI players the opportunity to innovate and build on top of this affordable tech stack. It essentially democratises AI. Being open-source also makes DeepSeek a very attractive platform for enterprises.
- DeepSeek Has Larger File Handling Capacity: On DeepSeek, end-users can upload files up to 100MB, which exceeds the file handling capacity of its closest competitors by leaps and bounds. This also means you can work faster with more data while using this platform.
- DeepSeek Has Custom-Prompt Templates: At the moment, DeepSeek is the only AI-powered platform of its kind that offers the custom prompt option. Its customizable prompt templates help users refine their search and get better responses.
- DeepSeek is Developed for a Fraction of the Cost of its Competitors: It is powered by the open-source DeepSeek-V3 model that is allegedly developed for less than $6m (£7.5m), which is nowhere close to the billions spent by its Silicon Valley competitors. This fact challenges the notion that to be a world leader in AI, one must have billions of dollars to spare.
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If you are still wondering if ChatGPT is better than DeepSeek, the verdict is clear in terms of user experience. Whether you’re a developer, researcher, or content creator, this platform offers an unparalleled AI experience that far surpasses the existing AI giants.
What are the Uses of DeepSeek?

The uses of DeepSeek are not radically different from its Silicon Valley competitors. But thanks to its unique features, open-source format, and cost-effective design, it is expected to make advanced AI more accessible to businesses, researchers, and everyday users. DeepSeek’s uses include:
- Smart Chatbots & Virtual Assistants: Companies can use DeepSeek to power AI-driven customer service bots and virtual assistants, making interactions more natural and efficient.
- Content Creation – Writers, marketers, and social media managers can generate blog posts, ad copy, and creative stories faster, saving time and effort.
- Coding Help – Developers can use DeepSeek for code suggestions, bug fixes, and automation, similar to tools like GitHub Copilot.
- Education & Research – Students and researchers can use it to summarize articles, generate study materials, or even get help solving complex problems.
- Translation & Localization – Businesses can translate content with better accuracy and adapt messaging for different cultures.
- Healthcare Support – AI can assist doctors by summarizing patient data, analyzing research, and improving diagnostic tools.
- Finance & Legal Insights – DeepSeek can quickly process financial reports and legal documents, extracting key insights.
First Impressions of DeepSeek
As per the Chinese lab, its model has demonstrated superior performance in comparison to OpenAI’s model across many benchmarks. According to research conducted by Artificial Analysis, DeepSeek’s R1 model surpasses models developed by Meta and Google, too, in overall quality! One member of the DeepSeek team, Luo Fuli, a 29-year-old AI researcher, has played a crucial role in developing DeepSeek-V2, China’s new AI chatbot and is considered an AI prodigy in China.
Are There Any Threats Associated With DeepSeek?
Is DeepSeek safe to use? Sure, it does the job at par or probably better than its competitors. It doesn’t have any malware, rather, none has been detected so far. But if you are concerned about privacy, this platform falls short. DeepSeek collects keystroke data, IP addresses, and user behavior across multiple platforms. In fact, its tracking is more extensive than that of many other AI chatbots.
Concerns also involve putting the data of millions of Italians at risk, as the first official complaint about the platform was lodged under the General Data Protection Regulation (GDPR) Act. The Italian government is keen to know what personal data is collected, from which source, and how is being used by the Chinese platform.
In light of these unanswered questions, users should be aware of data collection practices and assess their comfort with the platform’s privacy policies.
Another point of contention for the platform is the actual number of microchips used to power it. DeepSeek has not publicly detailed the specific hardware utilized in developing its models. So, there are some gaping loopholes in the actual number of Nvidia microchips used to support the R1 model.
Some industry leaders like Alexandr Wang, CEO of Scale AI, have said that the company is unable to reveal the actual number of microchips due to US export control on chips. Tesla owner Elon Musk called the hype surrounding the chatbot a “DeeperSeek” alluding to the point about R1 having more US-made microchips than what is acknowledged by the company.
The best way to find out how DeepSeek works is to actually try the app. So, try it and find out for yourself. Also, don’t forget to explore the AI and ML courses on Emeritus to stay ahead of the AI curve.
We will keep updating this story as facts emerge. So bookmark this page for the latest updates on DeepSeek.