DeepSeek AI – What is it, and How it Dethroned Nvidia and OpenAI in The AI Race

Jan 29, 2025

DeepSeek AI

ChatGPT struck the market a few years ago with its cutting-edge technology and artificial intelligence developments. Today, another company is taking over the AI industry with its advanced models that provide comparable performance at a fraction of the investment.

DeepSeek AI entered the generative AI market right after Donald Trump invested $500 billion into the Stargate project to improve the US artificial intelligence infrastructure.

The company presented three paramount technologies that cover multiple corporate and individual needs, raising the competition bar and promising a tough rivalry in AI in 2025.

What is DeepSeek AI?

DeepSeek AI is a groundbreaking Chinese artificial intelligence company founded in 2023. It has quickly become a leading player in the AI industry, known for developing powerful models like DeepSeek-R1 and DeepSeek-V3.

These models challenge established AI giants like OpenAI by offering advanced capabilities, including natural language processing, coding, and complex reasoning tasks.

DeepSeek differentiates itself with a focus on open-source solutions, making its models available to developers and businesses worldwide.

It turned heads due to its low-cost development compared to the astronomical amounts spent on US AI models, including ChatGPT, Llama, Gemini, and Anthropic. DeepSeek reportedly cost $6 million to develop, compared to the $1 trillion invested by blue-chip tech firms.

DeepSeek AI Models

DeepSeek has developed three major AI models designed to excel in different areas and provide reliable task automation. Let’s review them:

  • DeepSeek-R1: Released in January 2025, DeepSeek-R1 is an AI assistant that can perform multiple tasks, like complex reasoning and coding. It is open-source, making it highly accessible to developers and businesses, rivaling OpenAI’s ChatGPT.
  • DeepSeek-V3: Launched in December 2024, DeepSeek-V3 utilizes inference speed and resource efficiency to perform tasks that need significant computational power and large-scale data processing. It is a strong rival to Meta’s Llama AI model.
  • DeepSeek Coder: A series of open-source AI models that assist with coding tasks. They are capable of understanding and generating code across multiple programming languages, offering from 1.3 to 33 billion parameters, making it a strong competitor to Google DeepMind AlphaCode.

DeepSeek vs OpenAI

DeepSeek AI has quickly emerged as a competitor to OpenAI in developing language models and AI assistants.

While OpenAI’s models like GPT-4 are renowned for their versatility and advanced capabilities, DeepSeek differentiates itself by offering open-source solutions that prioritize efficiency and cost-effectiveness.

The company’s models, such as DeepSeek Coder, R1, and V3, excel at complex tasks like mathematical problem-solving, reasoning, and coding, challenging OpenAI’s dominance in these areas.

DeepSeek R1 and AI market

DeepSeek Impact on AI Stocks

DeepSeek caused a massive market boom, gaining huge media and investor attention starting on 27 January. This immediately affected the entire stock market.

As a result, US AI players and traders have started to reassess their positions in companies like OpenAI, Nvidia, and Broadcom, leading to massive fluctuations in AI stock prices. Some investors shifted their focus toward DeepSeek’s potential for disrupting the market.

Nvidia

Nvidia is a global leader in graphics processing units used for training and deploying advanced AI models. DeepSeek relies heavily on powerful hardware like those produced by Nvidia. However, major market sell-offs affected shares, causing it to lose 20% of its stock price in two days, including a $10 loss in intra-day trading on 27 January.

Nvidia stock price

AMSL

A fast-growing AI hardware and software company specializing in high-performance chips that support developing and deploying AI models like DeepSeek. While AMSL’s innovative approach helps drive the next wave of AI advancements, major market shifts affected its stock valuation, causing it to slip by 12%, losing around $100 in two days.

ASML shares performance

Broadcom Inc

A multinational tech company that develops a wide range of semiconductor solutions. Broadcom’s chips are integral to the infrastructure needed to power large-scale AI systems that focus on scalability and performance. However, its shares deteriorated starting on 27 January, dropping 20% of its value in two days from $244 to $195.

Broadcom stock performance

Final Takeaways

DeepSeek AI is rapidly establishing itself in the artificial intelligence landscape with powerful models that challenge leading US tech firms.

With models that directly compete with OpenAI’s ChatGPT, Meta’s Llama, and Google’s Gemini, DeepSeek is a major disruptor in the AI sector.

By focusing on open-source technology and efficiency, DeepSeek is democratizing cost-effective access to advanced AI capabilities, offering businesses and developers reliable alternatives to proprietary models. Ultimately changing the industry’s perspective to striking development costs.

Subscribe Our Newsletter

Supply Chains: 'Complete Chaos For The Shipping Industry' Amid Russia-Ukraine War And China Lockdowns
Supply Chains: ‘Complete Chaos For The Shipping Industry’ Amid Russia-Ukraine War And China Lockdowns

And on Tuesday, after Russia's approval of legislation that allows local airlines to retain aircraft leased from foreign corporations, Maersk said that it is attempting to get tens of thousands of shipping containers out of the country.

Banks and Finance
Meta_Is_Spending_Too_Much

Milena

Meta is Spending Too Much. And It Needs To Cool Down

The capital expenditures of the social media titan can be almost comparable to the expenses of ExxonMobil and Chevron. Let’s find out where all the money goes.

Companies
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Tamta

How to Create a Cryptocurrency
As the world grows more digital, the desire for new and innovative technology has increased dramatically.

discover
Best day trading strategies

Hazem

Best Day Trading Strategies to Maximize Your Profits in 2024

Day trading is an investing technique that traders use to capitalize on short-term price action. Here’s how to use the best 10 day trading strategies.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.