DeepSeek: China’s Open-Source AI Chatbot Taking the World by Storm

Published on August 18, 2025

What Is DeepSeek?

DeepSeek is an AI chatbot developed by Hangzhou-based DeepSeek company, founded in 2023 by hedge fund founder Liang Wenfeng. Using advanced mixture‑of‑experts (MoE) architecture, its R1 and V3 models offer top-tier performance at a fraction of the cost of leading Western AI models. The platform quickly rose to #1 on the U.S. iOS App Store in early 2025. Its model weights are open under the MIT license. :contentReference[oaicite:1]{index=1}

Behind the Tech: Efficient and Open

Mixture‑of‑Experts (MoE) Tech: DeepSeek-V3 features 671 billion parameters, yet only activates around 37 billion per input, maintaining efficiency. :contentReference[oaicite:2]{index=2}
Low-Cost Training: V3 was trained in just under two months for about US$5.58 million using ~2,000 Nvidia GPUs—much less than the budgets required by other major models. :contentReference[oaicite:3]{index=3}
Open-Source Approach: Both the model weights and infrastructure code are public, encouraging innovation and transparency in AI development. :contentReference[oaicite:4]{index=4}

Global Impact and Controversies

Skyrocketing Popularity: DeepSeek saw 525 million new visits in February 2025, surpassing ChatGPT. India emerged as a top traffic source. :contentReference[oaicite:5]{index=5}
Market Shockwaves: Its cost-efficiency sparked a massive downturn in Nvidia stock, wiping billions off its value in a single day. :contentReference[oaicite:6]{index=6}
Privacy & Security Risks: Experts have raised concerns over data governance. In some regions, DeepSeek is considered too risky for corporate environments due to its storage and access model. :contentReference[oaicite:7]{index=7}
Hardware Roadblocks: The planned launch of the R2 model has been delayed due to issues with training on Huawei’s Ascend chips, forcing partial reliance on Nvidia hardware. :contentReference[oaicite:8]{index=8}
Geopolitical Tensions: As an open-source AI powerhouse, DeepSeek has emerged into public view amid growing debates on AI standards and national tech strategies—prompting broader discussions on alignment, transparency, and sovereignty. :contentReference[oaicite:9]{index=9}

Why It Matters

DeepSeek exemplifies a shift toward more accessible and efficient AI. The combination of open-source models, cost-efficient training, and simplified access could reshape how AI tools are developed and shared globally. However, ethical and regulatory questions—especially around data handling and geopolitical alignment—remain pressing.