DeepSeek Vs Current AI System - Who Wins the AI War?

Recently you might have come across the news of stocks of NVIDIA crashing down and enduring a loss of more than 500 million in the US Stock Market and the name “DeepSeek R1” has gone viral over the past few days. What is this DeepSeek and how has it affected the market to such an unprecedented extent? For that, we will have to find out why.

Source - Just Think AI

Who Introduced DeepSeek in the Market?

It is an advanced open-source AI model introduced by the Chinese company called DeepSeek on January 20, 2025. During the release, it gained global attention due to its impressive performance, cost-efficiency and open source accessibility.

After its release, discussions regarding AI affordability and innovation began to arise as it was built at a fraction of the cost typically associated with high-performance models. Now, this has become a fundamental shift with respect to AI development.

For those who believe cost-effective AI models being developed is unachievable, well this is a solid reply for them. It is believed that this will pave the way for many such captivating AI-related developmental outcomes to come.

How DeepSeek Was Developed?

The DeepSeek R1 was trained using large-scale reinforced learning without supervised fine-tuning. This approach enables the AI model to develop advanced reasoning abilities through trial and error rather than relying on human-labeled datasets.

To mitigate issues such as repetitive outputs and language inconsistencies, a “cold-start” data phase has been incorporated by the DeepSeek R1 before the RL process begins where the model is exposed to a diverse and balanced dataset due to which a solid foundation can be ensured with respect to language understanding and structured reasoning.

Unlike traditional AI models, the speciality of DeepSeek R1’s learning model is that it is driven by reinforced mechanisms where it is being continuously improved by optimized reward-based feedback loops. This approach enables the model to generalize knowledge across a wide range of tasks, improving its problem-solving capabilities in areas such as logical reasoning, coding and mathematical problem-solving.

DeepSeek Model Vs Current AI System

As an open-source AI system, not only has DeepSeek disrupted the market by proving that cutting-edge AI can be developed at a fraction of the cost associated with that of large-scale models from major AI companies but it has also lowered the entry barrier for researchers, startups and independent developers across the world, enabling them to experiment with and build upon an excellent state-of-the-art AI model without the financial constraints that often accompany proprietary systems in general.

Recently it was reported that a team at UC Berkeley had managed to replicate the core technology behind the DeepSeek R1 with just 30$ worth of computing resources, proving how accessible and reproducible the model’s architecture is.

From a business and competitive standpoint though, it has become a serious competition to Western AI firms and has solidified the presence of Chinese AI firms in the current AI market.

Security Considerations of DeepSeek Model

With so many benefits on hand, one might be worried about the security of the model. Despite having such advanced reasoning capabilities, its security vulnerabilities can raise some serious concerns in the future especially within the AI community.

The primary reason of concern would be less effectiveness of the safety guardrails as compared to proprietary AI models such as OpenAI’s GPT series or Google DeepMind’s Gemini.

Given these security concerns, the AI community has emphasized the need of additional safety layers, regulatory oversight and continuous monitoring when it comes to operating AI models such as the DeepSeek R1.

Future developments of AI may require the implementation of the hybrid approach where better safety mechanisms, improved content moderation, and more effective alignment strategies can be integrated with the current AI models in order to take care of responsible AI deployment.

Final Thoughts

There will be many AI models developed and deployed into the market for the coming future but this will never change the fact that DeepSeek R1 has set a new wave for AI advancements signifying the fact that affordable, high-performance AI models are within reach.

Whether it will serve as a model for future AI development or as a cautionary tale regarding the dangers of unrestricted AI access will only depend on how the industry adapts, refines and regulates such technologies in the many years to come.



Written by Shashank S

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