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Fastlook Team

Posted: 8 min read

DeepSeek AI has moved from a curiosity to a serious option in under two years, and the reasons are practical as well as technical. This guide separates the access paths (free chat, the API, open-weight self-hosting) and flags where each carries different pricing, data-handling and model-identifier implications, so you can decide what fits your team before you send it anything sensitive.

Quick answer

DeepSeek AI is a family of large language models developed by DeepSeek, **a privately held company founded in May 2023 and headquartered in Hangzhou**. It offers free chat apps, a paid-style API and open-weight models released under the MIT License. Its main models include V4 Flash, V4 Pro, R1 and V3.
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deepseek ai
Last updated
Nov 2, 2026
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8 min
Deepseek Ai — brand illustration

Key Takeaways

  • The company behind DeepSeek was founded in May 2023 by Liang Wenfeng, a Zhejiang University graduate who also co-founded High-Flyer, the quant hedge fund that owns DeepSeek, according to [TechTarge…
  • The API is where DeepSeek's cost story is clearest.
  • The data-handling question depends on the access path, and this is where most summaries go vague.
  • Model choice follows the workload, not the brand name.
  • The most cited difference is price-performance rather than feature parity. For instance, according to TechRadar, DeepSeek's R1 reasoning model briefly dethroned ChatGPT as the most downloaded free app on the U.S. iOS App Store in January 2025.
How it works: landing page
  1. 1
    Key Takeaways
  2. 2
    What is DeepSeek AI, and who builds it?
  3. 3
    How does DeepSeek pricing compare for chat and API use?
  4. 4
    Is DeepSeek safe for sensitive or business data?
  5. 5
    Which DeepSeek models should you choose?
  6. 6
    How does DeepSeek compare to ChatGPT and other assistants?

What is DeepSeek AI, and who builds it?

The company behind DeepSeek was founded in May 2023 by Liang Wenfeng, a Zhejiang University graduate who also co-founded High-Flyer, the quant hedge fund that owns DeepSeek, according to TechTarget. Its first model series began in November 2023, and DeepSeek-R1 followed on 20 January 2025, per Wikipedia). LinkedIn lists the company as privately held and headquartered in Hangzhou, with 51-200 employees. Funding and valuation have not been publicly disclosed, so treat any figure you see elsewhere as unverified.

FactDetailSource
FoundedMay 2023TechTarget
HeadquartersHangzhouLinkedIn
OwnershipPrivately held; owned by High-FlyerTechTarget, LinkedIn
Funding and valuationNot publicly disclosedTechTarget

Company details are as reported by the cited sources at the time of writing. According to TechRadar, DeepSeek's R1 claim sent Nvidia's stock tumbling 17% in a single session.

deepseek ai — by the numbers

1
DeepSeek's R reasoning model briefly dethroned ChatGPT as the most…
17%
DeepSeek's R1 claim sent Nvidia's stock tumbling in a single session
97 million
DeepSeek had grown to roughly monthly active users by the time of its review
$0.14
The V4 Flash model's API starts at per million input tokens

How does DeepSeek pricing compare for chat and API use?

The API is where DeepSeek's cost story is clearest. TechTarget reports DeepSeek-V3.1 API pricing at $0.56 per million input tokens and $1.68 per million output tokens, against $1.25 input and $10 output for GPT-5. TechRadar reports that the V4 Flash API starts at $0.14 per million input tokens. LinkedIn notes a cut of more than 50% in API prices with V3.2-Exp. Chat access on the web and in apps is free to use, but the apps are proprietary, so the free tier is not a licence to embed the product in your own workflows.

Model or accessReported priceSource
DeepSeek-V3.1 API$0.56 input / $1.68 output per million tokensTechTarget
GPT-5 API (comparison)$1.25 input / $10 output per million tokensTechTarget
V4 Flash APIFrom $0.14 per million input tokensTechRadar
Open-weight modelsNo per-token cost when self-hosted (MIT licence)TechRadar

Prices change; confirm current rates on DeepSeek's official pricing page before budgeting. According to TechRadar, DeepSeek had grown to roughly 97 million monthly active users by the time of its review.

Is DeepSeek safe for sensitive or business data?

The data-handling question depends on the access path, and this is where most summaries go vague. TechRadar identifies three main concerns:

  • Data stored on Chinese servers
  • Known security vulnerabilities
  • Censorship on sensitive topics

Using the hosted chat or API sends prompts to infrastructure outside your control. Self-hosting the open weights moves inference inside your own environment, which removes the server-location concern but not the model's own behaviour or any vulnerabilities in your deployment. Custom-model traffic is also governed by the configured provider's policy, not DeepSeek's alone, so read each vendor's terms before routing customer or regulated data through it.

Access pathWhere data goesMain residual risk
Free web or mobile chatDeepSeek-operated servers (stored in China, per TechRadar)Server location, retention, censorship
Hosted APIDeepSeek infrastructure or a third-party provider you configureProvider policy and server location
Self-hosted open weightsYour own infrastructureYour deployment security and model behaviour

Verify against the current privacy policy for whichever access path you choose.

Which DeepSeek models should you choose?

Model choice follows the workload, not the brand name. According to TechRadar, V4 Pro has 1.6 trillion total parameters with 49 billion active at inference, while V4 Flash has 284 billion total with 13 billion active, so Flash is the lighter, cheaper option. DeepSeek-R1 uses a Mixture-of-Experts architecture with 671 billion parameters and was positioned around reasoning, per RevEchat and Wikipedia. V3 remains the general-purpose predecessor. For API calls, deepseek-usa.ai, an independent guide not affiliated with DeepSeek, reports that the official documentation recommends the identifier 'deepseek-flash' for V4.1-Flash, so check the identifier against DeepSeek's own docs before deploying.

ModelTotal parametersActive at inferenceBest fit
V4 Pro1.6 trillion49 billionHeavier reasoning and complex tasks
V4 Flash284 billion13 billionLower-cost, high-volume use
R1Not publicly documentedNot publicly documented in sourcesReasoning-focused workloads
V3Not publicly documented in sourcesNot publicly documented in sourcesGeneral-purpose predecessor

Parameter counts are as reported by the cited sources; confirm against DeepSeek's model documentation.

How does DeepSeek compare to ChatGPT and other assistants?

The most cited difference is price-performance rather than feature parity. DeepSeek-R1 briefly overtook ChatGPT as the most downloaded free app on the U.S. iOS App Store in January 2025, and by 27 January it had surpassed ChatGPT there, according to Wikipedia). TechRadar reports roughly 97 million monthly active users at the time of its review. Beyond downloads, the practical comparison comes down to where data lives, whether you need a closed-source vendor's ecosystem, and whether the open-weight licence matters to your team. Benchmarks change quickly, so judge each assistant on your own prompts rather than on headline rankings.

CriterionDeepSeekChatGPT
Model licenceModels under MIT; apps proprietaryNot publicly documented in sources
Self-hostingPossible with open weightsNot publicly documented in sources
API price (per million input tokens)From $0.14 (V4 Flash)$1.25 (GPT-5, per TechTarget)
Data location concernStored on Chinese servers (per TechRadar)Not publicly documented in sources

Other assistants are not covered by the sources here; add them only with a verified citation.

Can you self-host DeepSeek under open-weight licensing?

Yes, and the MIT License is the main reason engineering teams evaluate DeepSeek's open-weight models. According to TechRadar, DeepSeek's open-weight models are licensed under MIT, allowing teams to self-host and avoid per-token costs. According to Wikipedia, the R1, V3 and V4 models are all under the MIT License. However, the web and app products remain proprietary. Self-hosting therefore means running the open-weight models yourself, not the consumer chatbot apps.

The real cost shifts to hardware and operations. For example, DeepSeek-R1 has 671 billion parameters in a Mixture-of-Experts architecture, so it is not a laptop workload. Teams should plan for GPU capacity and an inference stack before committing. Specifically, confirm the hardware and software requirements for your chosen model in its official repository before deployment, since requirements differ across the R1, V3 and V4 families.

  • Confirm the model family (R1, V3 or V4)
  • Plan GPU capacity and an inference stack
  • Check the official repository for requirements

Why did DeepSeek move markets, and how significant was it?

The market reaction centred on the cost claim behind DeepSeek-R1. According to TechRadar, the DeepSeek-R1 release sent Nvidia's stock down 17% in a single session. According to TechTarget, the 27 January 2025 sell-off also hit Microsoft, Meta, Oracle and Broadcom.

According to RevEchat, DeepSeek-R1's developer cost was claimed at $6M, against an estimated $500M for OpenAI's comparable development.

The significance for buyers is the pressure DeepSeek-R1's pricing put on API rates across the market. TechTarget's comparison of DeepSeek-V3.1 API pricing against GPT-5 shows that gap directly: $0.56 versus $1.25 per million input tokens. That comparison does not settle the question of model quality.

Related guides

Frequently asked questions

What is DeepSeek AI?

DeepSeek AI is a family of large language models developed by DeepSeek, **a privately held company founded in May 2023 and headquartered in Hangzhou**. It offers free chat apps, a paid-style API and open-weight models released under the MIT License. Its main models include V4 Flash, V4 Pro, R1 and V3.

How much does DeepSeek cost to use?

Chat access is free, while the API is billed per token. **TechRadar reports V4 Flash API pricing starting at $0.14 per million input tokens**. TechTarget reports DeepSeek-V3.1 at $0.56 input and $1.68 output per million tokens. Self-hosting the open weights removes per-token charges but adds hardware and operations costs.

Is DeepSeek safe to use for business data?

The answer depends on the access path. According to TechRadar, DeepSeek raises three concerns: data is stored on Chinese servers, the product has known security vulnerabilities, and it censors content on sensitive topics. However, self-hosting DeepSeek's open-weight models keeps inference inside your own environment. Your deployment security still matters, though. Your access controls and logging remain your responsibility. Review the privacy policy of whichever route you choose before sending customer or regulated data.

Can I self-host DeepSeek?

Yes. According to TechRadar, DeepSeek's open-weight models are licensed under MIT, which allows self-hosting without per-token fees. According to Wikipedia, this covers R1, V3 and V4. However, the consumer web and app products remain proprietary. Large models such as DeepSeek-R1, with 671 billion parameters, need substantial GPU capacity and an inference stack to run.

What is the difference between DeepSeek V4 Flash and V4 Pro?

According to TechRadar, V4 Pro has 1.6 trillion total parameters with 49 billion active at inference, while V4 Flash has 284 billion total with 13 billion active. Flash is the smaller and lower-cost option for high-volume work, and Pro suits heavier tasks. Confirm current model identifiers in DeepSeek's official documentation.

What is DeepSeek-R1?

DeepSeek-R1 is a reasoning-focused model released on 20 January 2025, per Wikipedia. According to RevEchat, it uses a Mixture-of-Experts architecture with 671 billion parameters. Specifically, its release briefly lifted DeepSeek to the top of the U.S. iOS App Store free-app chart, ahead of ChatGPT.

Why did DeepSeek cause a stock market reaction?

TechRadar reports Nvidia's stock fell 17% in a single session after R1's claims. TechTarget notes the 27 January 2025 sell-off also affected Microsoft, Meta, Oracle and Broadcom. The reaction centred on claims of much lower development cost, which the company reports but which remain unaudited.

Is DeepSeek better than ChatGPT?

The sources here do not support a blanket verdict. DeepSeek offers lower API prices and open-weight licensing, and it passed ChatGPT in U.S. App Store downloads in January 2025. Performance on your own tasks is the reliable test, so benchmark both on representative prompts before deciding.

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