How DeepSeek’s AI Models Can Boost AI Innovation for Your Business
The last few weeks in the AI ecosystem have been nothing short of exciting, as China and the United States continue to compete fiercely for AI domination.
If you haven’t heard, a new Chinese startup has released a large language model (LLM) that competes, if not outperforms, the top-tier models from OpenAI, Meta, Anthropic, and Google.
Why is this new approach such a game changer, and how can your company use it right now? In this post, I’ll explain everything you need to know about this ground-breaking Chinese breakthrough, its significance for the AI ecosystem, and how you can capitalize on its great value for your business.
What is DeepSeek?
DeepSeek is a Chinese AI firm that focuses on researching and building high-end, open-source AI models. DeepSeek was founded in 2023 as a side project by Liang Wenfeng, a hedge fund manager who also runs High Flyer, a Chinese hedge fund worth $8 billion.
- High Flyer initially used AI for market predictions and investment strategies, but Liang saw an opportunity to expand into building cutting-edge AI models.
- Despite facing significant challenges such as limited access to state-of-the-art AI GPUs due to US export restrictions, DeepSeek managed to train its flagship AI model using just 2,000 low-grade NVIDIA H800 GPUs.
- According to their research paper, the training compute cost was approximately $6 million, a big contrast to the $500 million reportedly spent to train OpenAI’s o1 models.
- What’s even more impressive is that DeepSeek delivered this model at a fraction of the cost and faster than its competitors.
As of now, the DeepSeek R1 model outperforms OpenAI’s leading model, o1, on the Coding and MATH-500 benchmarks, according to ArtificialAnalysis’ AI model leaderboard.
Cost Efficiency and Performance
DeepSeek’s R1 model is not only powerful, but also quite inexpensive. While OpenAI’s o1 Model API charges $15 per mTok for input tokens and $60 per mTok for output tokens, DeepSeek’s R1 costs only $0.55 per mTok for input tokens and $2.19 per mTok for output tokens. That represents a stunning 96% price reduction for the same or greater performance.
What Does This Mean for Your Business?
With a cost-effective yet strong reasoning model like DeepSeek’s R1, the possibilities for your organization are limitless.
Companies can use this technique to improve their AI assistants and agents, resulting in fewer hallucinations, faster response times, and more advanced insights into their data. The model’s ability to self-check and correct itself makes it excellent for dealing with complicated, agent-based scenarios.
DeepSeek’s models are available for use immediately through their chat console at chat.deepseek.com. To get API access, go to platform.deepseek.com, establish an account, and integrate it into your existing AI solutions. If you already use OpenAI’s APIs, moving to DeepSeek is simple; simply alter the API endpoint URL and key, as DeepSeek’s APIs are completely compliant with OpenAI’s requirements.
Important Points to Consider
While DeepSeek’s models provide excellent value for a low price, there are a few things to consider. DeepSeek’s privacy policy and terms of service mention that the information collected on their platform may be utilized to improve and train their services. While this is not a deal breaker, it is something to bear in mind depending on your use case, particularly in more data-sensitive cases.
For enterprises with extremely sensitive data, DeepSeek has provided smaller, distilled versions of the R1 model that may be executed on a local computer within your enterprise utilizing a quantized version of the model on Ollama or AnythingLLM. However, for the majority of use cases, the publicly available version should be sufficient.
Good luck and happy AI transformation!
