The AI revolution is here, and platforms like DeepSeek AI are leading the charge. While ChatGPT and Gemini dominate headlines, DeepSeek has quietly carved a niche as a powerful, cost-effective alternative for businesses and developers. But what exactly is DeepSeek AI? Who created it? And how does it compare to giants like OpenAI?
In this guide, we’ll explore everything from DeepSeek’s origins and pricing to step-by-step tutorials for using its API. Whether you’re a developer, investor, or AI enthusiast, you’ll walk away with actionable insights. Let’s dive in!
What is DeepSeek AI?
DeepSeek AI is a China-based artificial intelligence company specializing in large language models (LLMs) and enterprise-grade AI solutions. Unlike general-purpose chatbots, DeepSeek focuses on:
- Vertical AI Applications: Tailored models for finance, healthcare, and legal sectors.
- Cost Efficiency: Claims to deliver GPT-4-level performance at 1/10th the cost.
- Multilingual Support: Fluent in English, Chinese, Japanese, and 10+ languages.
Key Products:
- DeepSeek-R1: General-purpose LLM for chatbots and content generation.
- DeepSeek-Finance: AI trained on financial reports, earnings calls, and market data.
- DeepSeek-Coder: Code-generation tool for Python, Java, and C++.
History of DeepSeek AI: From Startup to Unicorn
Founding (2023)
DeepSeek was founded in Hangzhou, China, by Dr. Liang Xu, a former Alibaba AI researcher. Xu left Alibaba Cloud’s AI division in early 2023, citing frustration with “slow enterprise adoption of generative AI.”
Funding & Valuation
- Seed Round (July 2023): Raised $50M from Sequoia Capital China and Hillhouse Capital.
- Series A (March 2024): 200Mata200Mata1.2B valuation, led by Tencent and Temasek.
- Total Funding to Date: $250M.
Key Milestones
- November 2023: Launched DeepSeek-R1, surpassing ChatGPT-3.5 in Chinese-language benchmarks.
- April 2024: Partnered with Huawei to integrate AI into cloud infrastructure.
- June 2024: Expanded to the U.S. and EU markets.
Who Owns DeepSeek AI?
DeepSeek is privately owned, with major stakeholders including:
- Dr. Liang Xu (CEO): 22% ownership.
- Sequoia Capital China: 18%.
- Tencent: 15%.
- Employee Stock Pool: 20%.
The company operates under DeepSeek Inc., headquartered in Hangzhou with offices in Singapore and San Francisco.
How Much Does DeepSeek AI Cost?
DeepSeek uses a pay-as-you-go pricing model, billed per 1,000 tokens (1 token ≈ 4 characters).
| Plan | Cost per 1K Tokens | Features |
|---|---|---|
| Free Tier | $0 (10K tokens/mo) | Access to DeepSeek-R1 |
| Standard | $0.0008 | Priority support, 99% uptime |
| Enterprise | Custom quote | Custom models, SLA guarantees |
Comparison to OpenAI ChatGPT-4:
- OpenAI: $0.03 per 1K tokens.
- DeepSeek: $0.0008 per 1K tokens (40x cheaper).
Also Read How to Use ChatGPT?
DeepSeek vs. OpenAI: Key Differences
| Factor | DeepSeek | OpenAI |
|---|---|---|
| Cost | $0.0008/1K tokens | $0.03/1K tokens |
| Specialization | Industry-specific models | General-purpose |
| Languages | 15+ | 50+ |
| Transparency | Closed-source | Partially open-source |
How to Use DeepSeek AI: Step-by-Step Guide
Step 1: Sign Up
- Visit DeepSeek’s official website.
- Click “Sign Up” and enter your email/Google account.
- Verify your email and complete your profile.
Step 2: Choose a Model
From the dashboard, select:
- DeepSeek-R1 for general tasks (e.g., emails, brainstorming).
- DeepSeek-Finance for stock analysis or market summaries.
- DeepSeek-Coder for programming help.
Step 3: Input Your Prompt
Use natural language to ask questions or give instructions:
- “Generate a Python script to scrape Twitter data.”
- “Summarize Q2 2025 earnings for Tesla in bullet points.”
Step 4: Customize Output (Advanced)
Adjust parameters:
- Temperature: 0.2 (factual) to 1.0 (creative).
- Max Length: 500 tokens for short answers, 2000 for essays.
How to Create a DeepSeek API Key
- Log into your DeepSeek account.
- Navigate to API Management > Create New Key.
- Name your key (e.g., “Customer Service Bot”).
- Copy the generated API key (e.g.,
dsk-5a8b3c7d...).
Example API Request (Python):
python
Copy
import requests
url = "https://api.deepseek.ai/v1/chat/completions"
headers = {
"Authorization": "Bearer YOUR_API_KEY",
"Content-Type": "application/json"
}
data = {
"model": "deepseek-r1",
"messages": [{"role": "user", "content": "Explain quantum computing simply."}]
}
response = requests.post(url, headers=headers, json=data)
print(response.json())
6 FAQs About DeepSeek AI
1. Who developed DeepSeek AI?
DeepSeek was developed by a team of AI researchers and engineers led by Dr. Liang Xu, formerly of Alibaba Cloud.
2. What is DeepSeek used for?
- Business: Customer service automation, financial analysis.
- Developers: Code generation, debugging.
- Individuals: Multilingual content creation, research.
3. How to invest in DeepSeek?
DeepSeek is privately held. Accredited investors can contact their venture partners (Sequoia, Tencent). Public investing may be possible post-IPO (rumored for 2026).
4. Is DeepSeek free?
Yes, for up to 10,000 tokens/month. Paid plans start at $0.0008/1K tokens.
5. How does DeepSeek’s cost compare to ChatGPT?
DeepSeek is 40x cheaper than ChatGPT-4 for similar output quality.
6. Is DeepSeek available globally?
Yes, except in countries under U.S. tech sanctions (e.g., Iran, North Korea).
Conclusion
DeepSeek AI is reshaping the AI landscape with its affordability and vertical expertise. While it may lack ChatGPT’s brand recognition, its cost efficiency makes it ideal for startups and enterprises alike. From generating code to analyzing stock trends, DeepSeek offers a compelling alternative in the crowded AI market.
Ready to explore DeepSeek? Start with its free tier and experiment with API integrations.
Have questions? Drop them in the comments below!
