How DeepSeek Works
DeepSeek is a Chinese artificial intelligence company specializing in the development of open-source large language models (LLMs). The company focuses on creating advanced AI solutions that are both cost-effective and efficient.
DeepSeek's business model emphasizes open-source development, making its AI models and training details freely available for use and modification. This approach fosters collaboration and innovation within the AI community.
The company also focuses on optimizing resource utilization, enabling the development of powerful AI solutions without the need for expensive, high-end hardware. By leveraging innovative training techniques and efficient resource management, DeepSeek has positioned itself as a disruptive force in the AI industry, challenging traditional methodologies and setting new standards for efficiency and openness.
In January 2025, DeepSeek released its first free chatbot app, based on the DeepSeek-R1 model, vfor Apple iOS and Android. Within weeks, the app surpassed ChatGPT as the most downloaded free app in the US iOS App Store, underscoring the company's rapid rise in the AI industry.
DeepSeek uses a multifaceted approach to monetization, leveraging expertise in artificial intelligence and quantitative trading. The company is fully funded by High-Flyer, a Chinese hedge fund that uses AI for trading algorithms.
Quantitative trading
DeepSeek’s parent company, High-Flyer, specializes in quantitative trading, using AI-driven algorithms to analyze financial markets and execute trades. The profits generated from these trading activities provide substantial financial support for DeepSeek’s AI research and development initiatives.
How DeepSeek Makes Money
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