DeepSeek

DeepSeek is a Chinese AI company and chatbot service of the same name that shook the global stock market in early 2025 with its low-cost, high-performance AI model.

DeepSeek is an AI company headquartered in Hangzhou, China, and is the origin of the hedge fund Highflyer. As it was reported that the inference model R1, which was released in early 2025, achieved performance comparable to the top US model at a much lower cost, it shook the global stock market, with NVIDIA's stock price plummeting in a day.

The reason Deepseek's impact is important is because it broke the conventional wisdom that top-level AI can only be created with enormous capital and the latest chips. The fact that the model was released as open-weight so anyone around the world could download and use it also created a stir. Afterwards, the debate over the effectiveness of the U.S. regulation of chips against China and the AI investment bubble debate reignited.

Meanwhile, several countries imposed restrictions on the use of government agencies due to questions about learning data and actual costs, answers reflecting Chinese government censorship, and concerns about the processing of personal information.

✅ Strengths

• It has become a symbol of AI efficiency by achieving top-tier performance at a low cost
• Has a significant impact on the global developer ecosystem with the release of open-weights
• It is highly regarded for reasoning skills such as math and coding

⚠️ Limits

• There is criticism that the Chinese government's censorship standards are reflected in the answers
• Usage has been restricted in several countries due to concerns over the processing of personal information
• There is controversy that the disclosed learning costs are lower than the actual amount