How Chinese AI Startup DeepSeek Made a Model that Rivals OpenAI

When Chinese quant hedge fund founder Liang Wenfeng went into AI research, he took 10,000 Nvidia chips and assembled a team of young, ambitious talent. Two years later, DeepSeek exploded on the scene.

On January 20, DeepSeek, a relatively unknown AI research lab from China, released an open source model that’s quickly become the talk of the town in Silicon Valley. According to a paper authored by the company, DeepSeek-R1 beats the industry’s leading models like OpenAI o1 on several math and reasoning benchmarks. In fact, on many metrics that matter—capability, cost, openness—DeepSeek is giving Western AI giants a run for their money.