DeepSeek AI vs. ChatGPT: The Next Big AI Showdown

DeepSeek AI is a Chinese company making significant moves in the artificial intelligence (AI) industry. Based in Hangzhou, Zhejiang, it was founded in July 2023 by Liang Wenfeng and is backed by the hedge fund High-Flyer. The company focuses on open-source large language models (LLMs) and has quickly gained attention for its powerful yet affordable AI models.

In November 2023, DeepSeek released its first model, DeepSeek Coder, followed by the DeepSeek-LLM series. In early 2024, it introduced the DeepSeek-MoE models, improving efficiency, and later launched DeepSeek-Math, designed for solving math problems. However, the real breakthrough came in May 2024 with DeepSeek-V2, a high-performance model priced much lower than its competitors. This triggered a price war among Chinese tech companies, leading to comparisons with Pinduoduo, an e-commerce company known for aggressive pricing. DeepSeek continued innovating with DeepSeek-Coder V2 and DeepSeek V2.5, further strengthening its position in the AI market.

In January 2025, DeepSeek launched its first free chatbot app for iOS and Android, powered by the DeepSeek-R1 model. Within weeks, the app became the most downloaded free app on the U.S. iOS App Store, surpassing ChatGPT. This rapid success signaled DeepSeek’s growing global influence and made U.S. tech companies rethink AI development strategies, focusing more on efficiency and cost-effectiveness instead of just increasing computing power. Despite its success, DeepSeek AI has also faced criticism. Many have pointed out that its responses align with the Chinese government’s views on sensitive topics, raising concerns about bias and censorship. Additionally, data privacy concerns have surfaced, leading some countries to take action. In February 2024, Australia banned DeepSeek’s technology from all government devices due to potential security risks. DeepSeek’s rise highlights a shift in AI development, where affordability, efficiency, and open-source models are gaining importance over sheer computational power. While DeepSeek is challenging established tech giants, regulatory and ethical concerns remain. As it continues to grow, its impact on the AI industry will only become more significant, raising questions about competition, responsible AI use, and global technology policies.

When compared to ChatGPT, DeepSeek AI has key differences in openness, cost, performance, and bias, making each better suited for different users. One of the biggest advantages of DeepSeek AI is that it offers open-source models, allowing developers and businesses to modify and use them freely. In contrast, OpenAI’s ChatGPT, especially its advanced versions like GPT-4, is closed-source, giving OpenAI full control over its use. This makes DeepSeek a more attractive option for companies seeking customizable AI solutions.

Cost is another major factor. DeepSeek AI is known for being a low-cost alternative to ChatGPT. The release of DeepSeek-V2 significantly lowered AI usage costs in China, forcing competitors into a price war. ChatGPT, while powerful, is often more expensive, making DeepSeek a preferable option for startups and budget-conscious businesses.

In terms of performance, ChatGPT excels at conversation, writing, and problem-solving, making it a more versatile AI. DeepSeek AI, however, is particularly strong in specialized areas like coding (DeepSeek Coder) and mathematics (DeepSeek-Math). Additionally, its models use Mixture of Experts (MoE), a technique that makes them faster and more cost-efficient. While DeepSeek performs well in technical tasks, ChatGPT remains the leader in general conversation and creativity. One of the most debated aspects of DeepSeek AI is its political bias. Reports suggest that its responses align with the Chinese government’s perspectives, raising concerns about censorship and limited viewpoints. ChatGPT, while also having content policies, generally provides a broader and more balanced perspective. This makes ChatGPT a better choice for users who value unrestricted discussions, while DeepSeek AI may be more accessible and culturally aligned for users in China.

Despite these differences, DeepSeek AI has made a huge impact. Its chatbot app’s rapid rise in early 2025 showed that it could compete with OpenAI, at least in terms of market adoption. However, OpenAI still holds a strong global presence with continuous improvements to its models and enterprise adoption.

So, which AI model is better? It depends on the user’s needs. If you want an open-source, cost-efficient AI with strong capabilities in coding and math, DeepSeek AI is a great choice. But if you need a well-rounded, creative, and unbiased AI for general use, professional writing, or open discussions, ChatGPT remains the better option. While DeepSeek has made impressive progress, it still has some catching up to do before it can fully challenge OpenAI worldwide.