Although the company’s name somewhat overlaps with Google DeepMind, which was launched earlier, the new player in the market has sparked a leap in attention and public interest, becoming one of the biggest AI surprises on the planet upon its launch.
DeepSeek, a company headquartered in China, enjoys significant popularity primarily because its most sought-after features keep pace with giants like OpenAI and Google, as well as due to notable stock market changes that are far from negligible.
In the following points, we will explore these factors and what the future holds for this young company, particularly in the context of the dynamics between China and the US.
How did it start? Origins of DeepSeek
DeepSeek is an AI company from China based in Hangzhou, Zhejiang, founded by entrepreneur and businessman Liang Wenfeng. The company develops open-source LLMs and is owned by a Chinese hedge fund, High-Flyer.
It all started back in 2015 when Liang Wenfeng cofounded High-Flyer. At first, it was a startup, but in 2019, it grew into a hedge fund focused on developing and using AI trading algorithms. For the first two years, they used AI only for trading.
In 2023, High-Flyer founded a startup called DeepSeek, and Liang Wenfeng was appointed CEO. Two years later, on 10 January 2025, DeepSeek announced the release of its first free-to-use chatbot app. The app surpassed its main competitor, ChatGPT, as the most downloaded free app in the US in just 17 days, causing an unprecedented stir on the market.
Unprecedented impact on the market
Few missed the launch of the DeepSeek model, which is why the stock market felt the impact, and so did some of the biggest giants.
For instance, the value of Nvidia shares dropped by as much as 18%. Similar declines were experienced by giants like OpenAI, Google, and other AI companies focused on small and medium-sized enterprises.
On top of this, there is justified concern among investors, who could quickly shift their focus and redirect their investments. However, this could lead to an even more significant drop in the shares of the largest companies.
Open-source approach
DeepSeek embraces an open-source philosophy, making its AI algorithms, models, and training details freely accessible to the public. The company stated that it is committed to transparency and fosters collaboration among developers and researchers worldwide. They also advocate for a more inclusive and innovative AI ecosystem.
Their strategy has the potential to reshape the AI landscape, as it empowers individuals and organisations to contribute to the evolution of AI technology. DeepSeek’s initiative highlights the importance of open collaboration in driving progress and solving complex challenges in the tech industry.
With the growing demand for ethical and transparent AI development, DeepSeek’s open-source model sets a precedent for the industry. The company paves the way for a future where AI breakthroughs are driven by collective effort rather than proprietary control.
Cheaper AI model that shook the market
By being cheaper than the competition, DeepSeek has opened the doors of the AI market to many other companies that do not have as much financial power. As dr Jovan Kurbalija, executive director of Diplo, says in his blog post titled ‘How David outwits Goliath in the age of AI?‘, ‘the age of David challenging Goliath has arrived in AI’.
For individuals, this means monthly costs are reduced by 30% to 50%, which can be, and often is, the biggest incentive for users looking to save.
The privileges once enjoyed by those with greater financial resources are now available to those who want to advance their small and medium-sized businesses.
Cyber threats and challenges faced by DeepSeek
Shortly after its launch, DeepSeek faced a significant setback when it was revealed that an error had exposed sensitive information to the public.
This raised alarms for many, especially as the immense popularity led to the AI Assistant being removed from the AppStore more times than OpenAI’s offering, and a large amount of data became accessible.
Experts have expressed concerns that others may have accessed the leaked data. The company has not yet commented on the incident, while the system’s vulnerability provides a foundation for hacking groups to exploit.
DeepSeek for the top spot, ChatGPT defends the throne
The AI race is heating up as DeepSeek challenges industry leader ChatGPT, aiming to claim the top spot in AI. With its open-source approach, DeepSeek is rapidly gaining attention by publicly making its models and training methods available, fostering innovation and collaboration across the AI community.
The race was further spiced up by DeepSeek’s claim that it built an AI model on par with OpenAI’s ChatGPT for under $6 million (£4.8 million). In comparison, Microsoft, OpenAI’s main partner, plans to invest around $80 billion in AI infrastructure this year.
As DeepSeek pushes forward with its transparent and accessible model, the battle for AI supremacy intensifies. Whether openness will outmatch ChatGPT’s established presence remains to be seen, but one thing is sure—the AI landscape is evolving faster than ever.
Why is DeepSeek gaining popularity in 2025?
DeepSeek has emerged as a major player in AI by embracing an open-source philosophy, making its models and training data freely available to developers. This transparency has fueled rapid innovation, allowing researchers and businesses to build upon its technology and contribute to advancements in AI.
Unlike closed systems controlled by major tech giants, DeepSeek’s approach promotes accessibility and collaboration, attracting a growing community of AI enthusiasts. Its cost-effective development, reportedly achieving results comparable to top-tier models with significantly lower investment, has also drawn attention.
As the demand for more open and adaptable AI solutions rises, DeepSeek’s commitment to shared knowledge positions it as a strong contender in the industry. Whether this strategy will redefine the AI landscape remains to be seen, but its growing influence in 2025 is undeniable.
DeepSeek in the future: Development, features, and strategies
Now that it has experienced ‘overnight success,’ the Chinese company aims to push DeepSeek to the top and position it among the most powerful AI firms in the world.
Users can definitely expect many advanced features that will fuel a fierce battle with giants like DeepMind and ChatGPT.
Strategically, DeepSeek will attempt to break into the American market and offer more financially accessible solutions, forcing the key players to make significant cuts.
DeepSeek is undoubtedly a real hit in the market, but it remains to be seen whether price is the only measure of its success.
Whether it will make a leap in its own technology and completely outpace the competition or remain shoulder to shoulder with the giants—or even falter—will be revealed in the near future.
One thing is sure: the Chinese company has seriously shaken up the market, which will need considerable time to recover.
