Deepseek - What You Need to Know

Is it all just hype or something you should be using on a day to day basis? Here's what you need to know.

In partnership with

So unless you live under a rock, you’ve probably heard of Deepseek by now

And, on the off chance you haven’t… here’s a quick rundown:

DeepSeek is a Chinese AI startup that recently released their own R1 Model as competition to OpenAI’s o1 Reasoning Model

Not to mention it’s completely open-source making it easily accessible to developers.

Okay… but WHY is it so popular all of a sudden? Let’s break it down.

Why It’s a Big Deal

In my opinion, OpenAI isn’t going anywhere anytime soon.

However, AI technology is incredibly overvalued in the US which brings us to the first reason…

Cost.

OpenAI spent roughly $100M training ChatGPT-4 whereas Deepseek’s R1 reportedly only spent 1/20th of that.

It’s also significantly cheaper for the consumer, which is you by the way.

Here’s a quick price comparison

Model

Total Tokens

Total Cost

Deepseek R1

1 Million

$2.19

OpenAI o1

1 Million

$60.00

You’re basically looking at prices that are 30x cheaper.

Okay, all of that sounds good enough so what’s the catch?

What You Should Do Next

If you want my honest opinion, ignore the noise.

Every few months there is a new GPT-killer headline and it’s cringe.

Instead, focus on applied AI - using these tools effectively in your business, not worshipping them.

Deepseek is a beautiful look into the future of AI, a future where it’s:

  • Cost Effective

  • Readily Accessible to the Masses

  • Not Monopolized

But no model is better over another and the reality is:

Most people don’t want to host or babysit open-source models like Deepseek

They just want something reliable and easy to use.

The real winners will be those who connect these models to one another.

Using them all in seamless workflows:

  • R1 for Deep Thinking

  • Claude for Creative Copywriting

  • ChatGPT for Analysis

All in all, I think it’s a great step forward for AI but the hype is totally overblown.

I’d love to here your opinions though, let me know what you guys think.

There’s a reason 400,000 professionals read this daily.

Join The AI Report, trusted by 400,000+ professionals at Google, Microsoft, and OpenAI. Get daily insights, tools, and strategies to master practical AI skills that drive results.

Until next time,

—Zoro