A smartphone screen shows the "Deepseek" logo with a whale icon, held against a colorful blurred background.

DeepSeek AI: The ChatGPT Competitor That Came Out of Nowhere

January 31, 20259 min read



So, you wake up, grab your phone, and see DeepSeek AI everywhere. It’s trending, people are talking about it, and suddenly, it feels like the early days of ChatGPT all over again.

But here’s the big question: What is DeepSeek, and why is it blowing up overnight?

If you’re wondering whether this AI model is just another overhyped tech product or something truly game-changing, you’re not alone. This article will break it all down for you.


What You’ll Learn in This Article:

What is DeepSeek AI?
Why is everyone suddenly talking about DeepSeek?
Should business owners pay attention to DeepSeek?
What DeepSeek can do (and where it falls short)?
How DeepSeek compares to other AI models?
What are people saying about DeepSeek?
Should You Switch from ChatGPT to DeepSeek?

DeepSeek AI is shaking up the AI industry fast. If you use AI tools for business, marketing, or productivity, you need to know what’s happening—before it impacts your workflow.

Let’s get into it.



What is DeepSeek?

DeepSeek is a Chinese artificial intelligence (AI) company specializing in open-source large language models (LLMs).

Founded in 2023 by former hedge fund entrepreneur Liang Wenfeng, the company is based in Hangzhou, China and has quickly gained global attention.

What makes DeepSeek unique?

Its AI models, particularly DeepSeek-R1, are being compared to industry leaders like OpenAI’s GPT-4o and Meta’s Llama 3.1—but at a fraction of the cost.

According to reports, DeepSeek trained its model for just $6 million, whereas OpenAI's GPT-4 required an estimated
$100 million in 2023.

Even more impressive, DeepSeek claims to use one-tenth of the computing power needed for a similar large language model.

But DeepSeek isn't just about efficiency.

The company is aggressively recruiting top AI researchers from China’s best universities and even hiring experts outside of traditional computer science fields.

This strategy helps improve its models' ability to handle complex reasoning, language generation, and real-world problem-solving.

Beyond its technology, DeepSeek is also making waves on the global stage.

The U.S. has implemented strict policies to restrict China’s AI advancements, especially when it comes to high-performance AI chips.

However, DeepSeek’s rapid success is challenging these efforts, proving that China can develop advanced AI despite sanctions. 

Another big differentiator?

DeepSeek is fully open-source. Unlike many U.S.-based AI companies that keep their models proprietary, DeepSeek makes its algorithms and training details freely available.

This move has positioned it as a disruptor in the AI space, attracting developers and businesses looking for affordable, customizable AI solutions.


With all that in mind, how did DeepSeek skyrocket to the top of the App Store in just one day? What’s behind this sudden explosion of interest? Let’s break down why DeepSeek is suddenly everywhere.



Why is DeepSeek Suddenly Everywhere?

DeepSeek's rapid rise has caught the attention of the AI world, dominating headlines, app stores, and even shaking the confidence of tech giants like Nvidia. Here’s why it’s the talk of the industry:

  1. AI Powerhouse at a Fraction of the Cost

    DeepSeek’s biggest advantage is its cost efficiency.


    While OpenAI spent around $100 million on GPT-4, DeepSeek claims to have built its model for just $6 million—a 94% reduction.

    On top of that, it requires ten times fewer computing resources, making high-performance AI more accessible beyond billion-dollar companies.

  2. Outperforming Expectations

    Initially, experts doubted whether a Chinese AI model could match the likes of ChatGPT or Meta’s Llama 3.1. However, early testing suggests that DeepSeek is on par with leading Western models, proving it to be a formidable competitor in generative AI.

  3. The Hype Machine is in Full Swing

    DeepSeek’s unexpected success, affordability, and open-source approach have driven widespread media coverage and social media discussions.


    Developers and businesses looking for customizable AI solutions without restrictions are flocking to DeepSeek.

  4. Making U.S. Tech Giants Nervous

    With its disruptive pricing and open-source nature, DeepSeek is challenging AI’s traditional business models.


    The impact is already visible—Nvidia’s stock dropped 18% after DeepSeek’s rise, raising concerns about AI’s long-term profitability for Western tech giants.


An infographic titled "4 Reasons DeepSeek Is Taking Over AI" highlights key factors: cost efficiency, competitive performance, social media & developer hype, and its impact on AI giants.


DeepSeek is making waves, but is it just hype or a real game-changer for businesses?
With its low-cost AI and open-source model, some say it could redefine how companies use AI—while others warn it comes with risks.
So, should business owners start paying attention, or is it too soon to make the switch? Let’s break it down.


Should Business Owners Pay Attention to DeepSeek?

DeepSeek AI is shaking up the business world, making AI more accessible and cost-effective. But does that mean it’s the right choice for your company?

The answer isn't a simple yes or no.

On one hand, DeepSeek is lowering the barrier to AI adoption, making advanced AI tools available to businesses that previously couldn’t afford them.

This could mean cheaper AI-driven customer service, automation, and productivity tools.

If DeepSeek continues its rapid development, small and mid-sized businesses might soon have access to AI capabilities that were once exclusive to billion-dollar enterprises.

But there’s another side to the story.

Privacy and security risks remain a concern.

DeepSeek operates under Chinese law, which has different data regulations than the U.S. or Europe.

Businesses that handle sensitive customer data must consider compliance issues before integrating it into their workflow.

An infographic titled "DeepSeek for Business: Key Considerations" highlights three factors: cost & accessibility, customization & open-source flexibility, and privacy & security risks.

So, is DeepSeek worth paying attention to? Absolutely.

But jumping in too early could come with potential risks—especially when it comes to data security and regulatory compliance.

Before making any business decisions, it’s essential to understand what DeepSeek AI can actually do—and where it struggles compared to ChatGPT.

We break it all down in the next section. ⬇️


DeepSeek AI: What Can It Do ( And Where Does It Fall Short?
DeepSeek AI is proving to be a formidable competitor in the AI space, with strengths in advanced reasoning, cost efficiency, and open-source accessibility. However, it also comes with limitations that businesses and developers need to consider.

Where DeepSeek Excels

✅ Advanced Reasoning & Problem-Solving – Performs well in logic-heavy tasks like coding, math, and complex queries.
Cost-Effective Development – Built at a fraction of the cost compared to models like GPT-4.
✅ Open-Source Accessibility – Allows developers to customize and integrate
AI into various applications.

Where DeepSeek Falls Shorth

❌ Censorship & Content Restrictions – Complies with strict regulations, limiting discussions on sensitive topics.
❌ Transparency & Ethical Concerns – Some reasoning processes remain unclear, raising alignment issues.
❌ Data Privacy Issues – Stores data on Chinese servers, which could pose regulatory concerns for global businesses.
❌ Performance Variability – Struggles in some problem-solving tasks and may not perform consistently across all languages.

An infographic titled "DeepSeek AI: Strengths & Weaknesses" compares its advantages, like advanced reasoning and cost-effectiveness, with challenges such as censorship and data privacy concerns.

How Is DeepSeek’s AI Different from Other Models?

DeepSeek is taking a different path from traditional AI models like OpenAI’s GPT, Meta’s Llama, and Google’s Gemini. Here’s how it stands out:

  1. Real-Time AI Thinking – Unlike most AI that rely on pre-trained data, DeepSeek is experimenting with step-by-step reasoning, improving accuracy in complex tasks like math, finance, and logistics.

  2. Built for Businesses – While many AIs focus on consumers, DeepSeek is targeting enterprise solutions, offering AI-driven automation for sales, scheduling, and industry-specific applications.

  3. Surprising Security Measures – DeepSeek’s open-source nature allows developers to inspect its code—something you can’t do with ChatGPT or Gemini. It may also allow on-premises deployment, offering businesses greater control.

  4. A Different Long-Term Vision – Instead of chasing Artificial General Intelligence (AGI) like OpenAI and Google, DeepSeek is focused on affordability, efficiency, and industry integration—making AI more practical and accessible.

An infographic comparing DeepSeek AI to traditional AI models, highlighting differences in real-time thinking, business focus, open-source customization, and cost efficiency.


Next Up: What Are People Saying About DeepSeek?

DeepSeek’s rapid rise has sparked excitement, skepticism, and heated debates. But how do actual users and industry experts feel about it? Let’s break down the real-world reactions in the next section.



What Are People Saying About DeepSeek?

DeepSeek has quickly become a hot topic in the AI community, with users sharing a mix of praise and concerns.

Positive Feedback:

  • Performance: Many users find DeepSeek's AI chatbot impressive, noting its ability to handle basic tasks and logical reasoning effectively.

  • Accessibility: The free availability of DeepSeek's app has been a significant draw, allowing a broad audience to explore its capabilities.

Areas of Concern:

  • Censorship: Some users have reported that DeepSeek's chatbot censors itself in real-time, especially on sensitive topics, which can limit the depth of discussions.

  • Data Privacy: There are concerns about data privacy, as DeepSeek collects extensive user data and stores it on servers in China, leading to apprehensions about data security and potential government access.
    bgr.com

For businesses considering AI tools, it's essential to weigh these factors carefully.

Exploring the role of AI in appointment setting can offer valuable insights into how such technologies might integrate into your operations.

As with any emerging technology, user experiences with DeepSeek vary. Staying informed about both its capabilities and limitations will help you make the best decision for your needs.

ChatGPT vs. DeepSeek: Which AI Comes Out on Top?


DeepSeek is gaining attention, but how does it compare to ChatGPT? While both have strengths, ChatGPT still leads in key areas.


1. Language Understanding & Conversation QualityH3

✔ More Natural Responses – ChatGPT sounds more human, while DeepSeek can feel robotic.
✔ Better Context Retention – ChatGPT remembers conversations better, while DeepSeek loses track faster.


2. Creative Writing & Content Generation

✔ Stronger Storytelling & Copywriting – ChatGPT creates engaging content; DeepSeek feels formulaic.
✔ Better Tone Adaptation – ChatGPT switches between casual, formal, and persuasive styles.


3. Code Generation & Debugging

✔ Supports More Languages – ChatGPT works with more programming languages.
✔ Explains & Fixes Code Better – ChatGPT is superior for learning and debugging.


4. Business & Enterprise Applications

✔ Stronger AI-Powered Tools – ChatGPT integrates with Microsoft and CRM software.
✔ More Enterprise Support – OpenAI provides better customization and API access.


5. Privacy & Security

✔ ChatGPT Complies with GDPR & CCPA – Stronger privacy protections.
✔ DeepSeek’s Data Stored in China – Raises concerns for sensitive business data.

A bar chart comparing ChatGPT and DeepSeek across five categories: language understanding, creative writing, code debugging, business applications, and privacy & security, with ChatGPT scoring higher in most areas.


Final Verdict: Where ChatGPT Wins

DeepSeek is promising but ChatGPT is still the better all-around AI for:
✔ Conversational Flow & Emotional Intelligence
✔ Creative & Business Writing
✔ Code Debugging & Explanations
✔ Enterprise AI Solutions & Security Compliance



So, should you make the switch? Well, that’s the big question.
DeepSeek has made an impressive entrance, but let’s not forget—ChatGPT isn’t going down without a fight.
OpenAI is constantly evolving, rolling out new features, and ensuring its AI stays ahead.

Before you decide, let’s take a closer look at whether switching actually makes sense—because what ChatGPT has in store might just change your mind.




Should You Switch from ChatGPT to DeepSeek?

As a business owner navigating the evolving AI landscape, deciding whether to transition from ChatGPT to DeepSeek requires careful consideration of each platform's current capabilities and forthcoming enhancements.

ChatGPT's Upcoming Features:

  • Operator AI Agent: OpenAI is introducing "Operator," an AI agent capable of performing tasks online, such as booking trips and purchasing groceries, aiming to automate various daily and professional tasks.

  • Scheduled Tasks: ChatGPT will soon allow users to set reminders and recurring requests, enhancing its utility in managing routine tasks.

DeepSeek's Advancements:

  • Janus-Pro-7B Model: DeepSeek has announced its new open-source AI model, Janus-Pro-7B, which has outperformed industry rivals in text-to-image generation benchmarks.


Conclusion:

Given ChatGPT's upcoming features and established reliability, it may be prudent for businesses to continue utilizing ChatGPT while monitoring DeepSeek's progress. This approach allows for leveraging current capabilities while remaining open to future innovations.


Kofi Akyeampong is a seasoned entrepreneur and the CEO of Enfluence Digital & InfiniLeads, a cutting-edge AI Sales & Marketing solution helping B2B companies optimize appointment booking and boost sales conversions. With a Master's degree in Computer Science, experience as a data analyst for Fortune 500 companies, and over half a decade in marketing, Kofi has a proven track record of driving revenue and scaling businesses across various industries, including transportation, logistics, construction, and professional services. He combines technical expertise with innovative strategies to deliver impactful results, leveraging AI to transform sales processes and streamline business growth.

Kofi Akyeampong

Kofi Akyeampong is a seasoned entrepreneur and the CEO of Enfluence Digital & InfiniLeads, a cutting-edge AI Sales & Marketing solution helping B2B companies optimize appointment booking and boost sales conversions. With a Master's degree in Computer Science, experience as a data analyst for Fortune 500 companies, and over half a decade in marketing, Kofi has a proven track record of driving revenue and scaling businesses across various industries, including transportation, logistics, construction, and professional services. He combines technical expertise with innovative strategies to deliver impactful results, leveraging AI to transform sales processes and streamline business growth.

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