What is DeepSeek? Definition, models and how it works

DeepSeek is a Chinese artificial intelligence company from Hangzhou that builds open-weight large language models and runs a free chatbot of the same name. It was founded on 17 July 2023 by Liang Wenfeng and is funded by the hedge fund High-Flyer. In January 2025 its reasoning model R1 overtook ChatGPT as the most downloaded free app on the US App Store, and Nvidia’s share price fell by 18% shortly after.

Updated: 17 October 20263 min read
Infographic: DeepSeek in numbers, founded 2023, 671 billion parameters in V3, 18% Nvidia share drop, 1 million token context
Source: DeepSeek-V3 report, DeepSeek API docs, Wikipedia

How does DeepSeek work?

DeepSeek works as a family of open-weight language models served through a chat app and a paid API. Users talk to the models at chat.deepseek.com or in the mobile apps, while developers call them through an API that follows the OpenAI request format. Since January 2025 DeepSeek publishes its model weights under free licences (MIT for R1-0528, V3.1, V3.2 and V4), so anyone can download and run them on their own servers.

The models use a Mixture-of-Experts architecture. According to the DeepSeek-V3 technical report, V3 has 671 billion parameters in total but activates only 37 billion per token, and it was trained on 14.8 trillion tokens using 2.788 million H800 GPU hours. This design is the main reason DeepSeek is cheap to train and cheap to run compared with dense models of similar quality.

DeepSeek history: key dates

DeepSeek grew from High-Flyer’s internal AGI research lab into one of the most watched AI labs in the world in under two years.

DateEvent
17 July 2023DeepSeek is spun off from High-Flyer’s AI lab
May 2024DeepSeek-V2 launches
December 2024DeepSeek-V3 launches
20 January 2025Reasoning model DeepSeek-R1 launches
27 January 2025The app tops the US iOS App Store, Nvidia shares drop 18%
17 September 2025R1 paper is published in Nature after peer review
1 December 2025DeepSeek-V3.2 launches
24 April 2026DeepSeek-V4 preview, followed by V4-Flash (31 July) and V4-Pro (13 August)

The Nature paper also answered the cost debate. Its supplementary material puts the reasoning training of R1 at about 294,000 USD, on top of roughly 6 million USD spent on the base model, according to Scientific American’s report on the publication.

DeepSeek models and API pricing

DeepSeek currently sells two main models through its API, Flash and Pro, both with a 1 million token context window. The overview below uses DeepSeek’s own pricing page (October 2026, peak rates per 1 million tokens).

DeepSeek Flash

Flash (DeepSeek-V4.1-Flash) is the fast, low-cost model: 0.30 USD per million input tokens on a cache miss and 1.20 USD per million output tokens. Off-peak rates are half of that.

DeepSeek Pro

Pro (DeepSeek-V4-Pro) targets harder reasoning and coding tasks at 1.32 USD per million input tokens and 3.96 USD per million output tokens. Both models allow up to 384,000 output tokens.

DeepSeek in marketing, SEO and AI search

For marketers, DeepSeek matters more as a cheap engine inside tools than as a place where customers search. Statcounter’s September 2026 data gives DeepSeek only 0.02% of the worldwide AI chatbot market, against 80.48% for ChatGPT and 10.91% for Google Gemini. Brand visibility work for Generative Engine Optimization should therefore focus on ChatGPT, Gemini and AI Overviews first.

Where I do see DeepSeek in SEO work is behind the scenes: content briefs, keyword clustering, translation drafts and data extraction at a fraction of the price of closed models. Because the weights are open, agencies can host a large language model on their own infrastructure and keep client data out of third-party clouds.

Privacy and regulation

DeepSeek’s consumer app stores user data on servers in China, which triggered action from European regulators. Italy’s Garante blocked the app on 30 January 2025, and Poland’s UODO advised far-reaching caution on 6 February 2025. Use the hosted app only for non-sensitive tasks, and self-host the open weights when client or personal data is involved.

DeepSeek vs ChatGPT

FeatureDeepSeekChatGPT
OwnerDeepSeek (High-Flyer), HangzhouOpenAI, San Francisco
Model weightsOpen, MIT licenceClosed for flagship models
Chatbot market share (Sept 2026)0.02%80.48%
Main marketing useCheap automation and self-hostingBrand visibility in AI answers

Other open alternatives include Mistral AI from France, which is the safer choice for teams that need EU data residency.

Pro tip: Run bulk SEO tasks such as meta description drafts or keyword categorisation on DeepSeek Flash during off-peak hours, when the API costs half. Keep a human review step, and never paste client personal data into the hosted chat app.

If you want to know how AI models see your brand across markets, see my AI SEO services.

Frequently asked questions about DeepSeek

Who owns DeepSeek?

DeepSeek is owned and funded by High-Flyer, a Chinese quantitative hedge fund. Its founder and CEO is Liang Wenfeng, who also co-founded High-Flyer.

When was DeepSeek founded?

DeepSeek was founded on 17 July 2023 in Hangzhou, China. It became globally known after the launch of its R1 reasoning model on 20 January 2025.

Is DeepSeek open source?

DeepSeek releases its model weights under open licences, with recent models such as V3.2 and V4 under the MIT licence. Anyone can download and run them, although the training data is not published.

Is DeepSeek safe to use?

The hosted DeepSeek app stores data on servers in China, so European regulators warned against it. Italy blocked the app in January 2025 and Poland's UODO advised caution, while self-hosting the open weights avoids sending data to China.

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