DeepSeek's Market Position
DeepSeek has grown in popularity since its initial public release in 2025, with models being in such demand that the company's servers have gone down at times. The AI model is open source, meaning it is free to access and less expensive to use. DeepSeek's free chatbot app is one of the most downloaded apps in the Apple App Store rankings, and its AI models are also used by US tech companies. Companies like Snowflake, Vercel and OpenRouter all incorporate DeepSeek in their offerings to customers.
For a technology or AI developer, using DeepSeek in their work costs a fraction of what a closed model like Google's Gemini, Anthropic's Claude or OpenAI's Codex would. Last year, DeepSeek said it took about $6m (£4.5m) to train the debut version of its model, while the costs associated with OpenAI's GPT-4 were roughly $100m. Such revelations sent tech stocks tumbling.
The most recent version of DeepSeek was released last week. Users of the model have praised it online, saying it beats even the most advanced AI tools out of OpenAI on common tasks for AI tools like computer software coding.