Issue 13 · Nov 2–8, 2026Editions · Glossary · Archive · Method · RSS · HU / ENG

News of the AI era, curated weekly

Glossary › Players and products

DeepSeek

basicwidespread

A Chinese artificial intelligence company and its namesake chatbot, which in early 2025 disrupted the global AI market with freely downloadable language models developed at a much lower cost than expected.

In plain terms

DeepSeek is both a Hangzhou-based Chinese company and the name of the chatbot it created. You use it the same way as ChatGPT: you type your question, and it answers, writes text, translates, summarizes, or creates program code.

It became famous for showing that a near-state-of-the-art model does not necessarily require as much money and as many top-tier chips as the American giants spend. It is like an obscure car manufacturer launching a car comparable to those of major brands for a fraction of the price, where anyone can freely modify the finished car. The much-cited development cost of approximately 6 million dollars, however, covers only the final training run; the total expenditure was much higher.

The other difference is openness. DeepSeek makes the 'weights' of its models, meaning the trained model itself, freely downloadable. Anyone can therefore run it on their own machine, modify it, and build their own service on top of it. By contrast, the flagship models of most large American competitors are available only through the developer's own servers.

How it works

  1. The company trains a large language model on vast amounts of text. The model learns what word likely follows another, and this forms the basis of its response.
  2. It uses efficient solutions: the model consists of many smaller 'expert' components, and only a few are active when generating each word. Thus, less computing capacity is required.
  3. The 'thinking' mode walks through the task step by step before answering and shows you this line of reasoning. Originally, this was possible only with the separate DeepSeek-R1 model; later, the company merged normal and thinking modes, and switching between them is done with a button in the application.
  4. You can access the finished model in three ways: as a free chatbot on the web and in the mobile app, through a paid programming interface (API), or by downloading it and running it on your own machine.
  5. Since the model is freely downloadable, other companies also integrate it into their products, such as cloud services or coding agents.

An everyday example

A friend tells you they do not subscribe to anything because DeepSeek writes official letters for them for free and explains their child's math homework. You download the app and turn on the 'deep thinking' (DeepThink) mode. You see that before answering, it writes out how it reaches the solution. However, if you ask about a Chinese political topic, it avoids answering.

Who is affected

everyoneAnyone can try it as a free chatbot, but you should know that the data you enter goes to Chinese servers.
developerThanks to its downloadable models and cheap API, it is a common foundation for custom applications and agents. → Code
entrepreneur, executiveIt may be a cheap alternative, but for corporate or customer data, you must first weigh data processing and compliance risks.
bank customer, investorDeepSeek's appearance in January 2025 shook the share prices of chip manufacturers and major tech companies in a single day. → Money

A common misconception

MythUsing DeepSeek always means your data goes to China.
In realityThis applies to the company's own application and cloud service. If you run the freely downloadable model on your own machine or with a European provider, the data does not reach DeepSeek.

Limits and risks

Similar, but not the same

Related concepts

Broader

Large language model, Generative AI, chatbot, Open-source model

Narrower

DeepSeek-R1, DeepSeek-V3

On the edge

ChatGPT, OpenAI, Qwen, Reasoning model, Model distillation

A brief history

DeepSeek was founded in 2023 by Liang Wenfeng in Hangzhou, China, with the backing of the High-Flyer investment fund. It gained worldwide fame in January 2025 with the release of the DeepSeek-R1 model. The app topped the US App Store download charts, and Nvidia lost approximately 600 billion dollars in market value on January 27, 2025, marking the largest single-day loss in US stock market history. In the second half of 2025, the company merged normal and reasoning modes into a single model.

Where things stand

By the end of 2026, DeepSeek is one of the best-known Chinese AI players: its chatbot is used by the masses, and developers worldwide build on its open models. Meanwhile, in the West, its use is restricted in several government and corporate environments for data-protection and security reasons.

Status: 2026 November

In the news

Appears in 19 Agent Age stories; the curve shows weekly occurrence in the news magazine.

Also known as

DeepSeek · Deep Seek · DeepSeek AI · DeepSeek-R1 · DeepSeek-V3 · DeepSeek Chat · 深度求索 · Chinese ChatGPT

Sources

This entry was machine-edited and has undergone machine expert review; the “In the news” section updates automatically from Agent Age stories.