DeepSeek breaks all boundaries: Why this open-source AI is turning the business world on its head!

Artificial intelligence (AI) is developing rapidly. While large companies such as OpenAI and Google rely on closed, proprietary models, new players such as DeepSeek are taking a different approach: open source AI.

DeepSeek, a company founded in 2023, focuses on transparent, customizable and cost-efficient AI technology. But how does DeepSeek-R1 compare to GPT-4? What opportunities does it present for companies? And what economic impact will the progress of open source AI have on the global market?

What is DeepSeek?

DeepSeek specializes in the development of generative open source AI models. Its DeepSeek-R1 model was developed with comparatively few resources - just 6 million US dollars - and yet competes with closed systems such as GPT-4.

Economic impact of DeepSeek

The release of DeepSeek-R1 had a significant impact on the global AI market:

• Nvidia shares fell 18% as investors assessed the long-term impact of China's AI advances on the hardware market.
• US sanctions are hampering access to high-end AI hardware in China, especially Nvidia A100 and H100 graphics cards.
• Despite these challenges, DeepSeek has proven that powerful AI models can also be developed using more efficient training methods.

Technical comparison: DeepSeek-R1 vs. GPT-4

A direct comparison between DeepSeek-R1 and GPT-4 shows that both models have specific strengths and weaknesses.

1. open source vs. closed source

DeepSeek-R1 is open source: companies can host it locally, customize it and use it independently of third-party providers.

• GPT-4 is proprietary: it is only accessible via OpenAI's API, which offers less flexibility but a mature infrastructure.

2. development approach and efficiency

• DeepSeek focuses on resource-saving training and cost-efficient optimization.
• GPT-4 has been trained with massive computing resources, which increases performance but also results in high operating costs.

3. performance in specific tasks

• Mathematics & programming: DeepSeek-R1 outperforms GPT-4 in mathematical tasks and debugging.
• General language processing: GPT-4 remains the leader in complex language tasks.

4. cost structure

• DeepSeek-R1 can be used license-free, which enables considerable cost savings in the long term.
• GPT-4 is chargeable and requires API payments or a subscription.

Conclusion: Companies that focus on flexibility and cost efficiency will benefit from DeepSeek-R1. However, those who require maximum performance and an established infrastructure are better served with GPT-4.

How companies can benefit from open source AI

1. make AI affordable for SMEs and start-ups

The open source approach makes powerful AI models accessible to small companies too.

2. flexibility through individual customization

Companies can train open source AI models according to their needs and use them for customer service, data analysis or content creation.

3. independent implementation and cost awareness

Although there are no license fees, companies still have to provide the necessary infrastructure and computing power. Open source AI is therefore particularly suitable for companies that are prepared to invest in their own hardware or cloud solutions in order to remain independent of external providers in the long term.

Challenges and risks of open source AI

1. technical know-how required

The adaptation and implementation of open source AI requires specialist knowledge. Companies should train employees or bring in external partners.

2. data protection and compliance

The open source approach offers transparency, but presents companies with the challenge of meeting data protection and security requirements.

3. hardware limitations and geopolitical risks

The current US sanctions against China are making access to high-performance GPUs from Nvidia more difficult. But DeepSeek shows that algorithmic efficiency can create powerful AI models even with limited resources.

Practical application examples of open source AI

1. AI-supported chatbots for better customer service

Companies can use open source AI to develop personalized chatbots and virtual assistants.

2. automated content creation

AI can generate blog articles, product descriptions and social media posts and thus optimize marketing processes.

3. data analysis for more precise business decisions

Open source AI enables companies to analyze large amounts of data and make better strategic decisions.

Conclusion: Open source AI as a future technology for companies

Open source AI such as DeepSeek-R1 shows that powerful models do not necessarily require billions in investment and closed systems. The economic impact is already being felt: DeepSeek is changing the AI market and posing new challenges for proprietary providers.

Companies that rely on open source AI at an early stage benefit from greater flexibility. Those who use open source models strategically can secure a decisive competitive advantage.