2024 was a massive year in tech. Many technological advancements were made, and AI tools started being commonly utilized in society, along with guidelines concerning their use being implemented. It felt like everywhere you look, there’s something pivotal happening – and artificial intelligence was at the forefront. It didn’t take long for 2025 to give away its first big news, DeepSeek. For a moment, it felt like the world went crazy – the stock market tumbled (Nvidia lost almost $600 bn. of its market value, making it a new US record), DeepSeek became the most downloaded free app on IOS in the U.S, headlines were being made of how they’re the new tycoon. All because this AI model reportedly costs a fraction of what other big LLMs cost. “Reportedly” is a great word to use, as DeepSeek may not be as revolutionary and as big as it seemed to be, and we’re here to smooth this out.
What is DeepSeek?
Deepseek is an AI company based in China that develops open-source Large Language Models. It’s a privately owned company, founded only eighteen months ago (as of February 2025).
DeepSeek released their first open-use LLM chatbot app on January 10, 2025. The release has garnered intense reactions, some attributing it to a mass hysteria phenomenon.
What’s the Big Deal?
The arrival of DeepSeek’s chatbot came with plenty of reactions, ranging from amusement and a sense of advancement, to distrust and panic. This uproar was caused by DeepSeek’s claims to be trained at a significantly lower price – there’s a $94 million difference between the cost of DeepSeek’s training and that of OpenAI’s. DeepSeek’s chatbot also requires less computing power than Meta’s one.
This phenomenon resulted in the previously mentioned social popularity. People wanted to find out for themselves what the hype was all about by downloading the app.
The aftermath also included a stock market craze.
As AI experts, we were a bit skeptical about the hype surrounding this tool. Our suspicion turned out to be right.
The Claims and the Facts
Claim: DeepSeek is revolutionary.
Fact: This is a very far-stretched statement. DeepSeek’s abilities are the same as those of OpenAI’s ChatGPT, Google’s Gemini, or Meta’s bot. It doesn’t have any skills that weren’t introduced earlier.
Claim: DeepSeek is a thousand times cheaper than other models.
Fact: DeepSeek is in fact cheaper at its buying price, but that isn’t what the “cheap” claim is targeting. DeepSeek and the media are popularizing the statement that the cost of the tools’ development and training is cheap and revolutionary – and that is far from the truth. That cost is comparable with that of American chatbots.
Claim: American companies are losing the high ground over AI.
Fact: American companies are definitely shaken up by DeepSeek, but they’re still tycoons. It is also possible that DeepSeek distilled OpenAI’s algorithms and models to base their chatbot on.
Claim: DeepSeek is biased and censored.
Fact: DeepSeek, like every AI chatbot, has its’ “prohibited” topics, which it’ll simply not answer. This chatbot is strictly controlled by the political system and it keeps off topics such as Taiwan’s status or human rights in China.
DeepSeek vs. DeepNext: Debunking the Hype
While the commotion around DeepSeek has spurred numerous comparisons and claims, it’s valid to focus on solutions that genuinely enhance productivity and teamwork in practical settings. This is where DeepNext, STX Next’s AI Digital Colleague, distinguishes itself.
While DeepSeek's claims of being revolutionary miss the mark, DeepNext truly sets the bar by integrating seamlessly as an autonomous team member, not just an assistant. Rather than offering empty promises, DeepNext elevates team collaboration and efficiency in real-world applications.
A New Standard for Digital Collaboration
DeepNext takes a different approach by not just increasing task speed but also enabling your team to focus on creativity and strategy. Handling mundane tasks independently (from task analysis to code merging) DeepNext becomes a real developer. This offers tangible improvements in team performance and project outcomes, which DeepSeek has yet to substantiate.
Efficiency Without the Hassle
DeepNext integrates smoothly into workflows, needing no extra tools or constant developer intervention, unlike traditional AI assistants. This lean efficiency ensures consistent quality – a true advancement when compared to DeepSeek’s vague claims.
While DeepSeek’s lower price might stir competition, DeepNext reshapes team collaboration and project success. It offers genuine value beyond just saving a few bucks, positioning itself as a dependable, self-managing team member.
By choosing DeepNext, you're not participating in another AI hype; you’re enhancing your team’s capacity to thrive in a competitive tech environment.
What Does This Mean for Tech?
DeepSeek’s arrival is deemed as a wake-up call for the U.S. American companies have gotten too comfortable with their position and leisure of having hegemony over AI models and the best chips. The global domination over AI is a race, and it’s just gotten wilder.
What this LLM model proved is that you do not need plenty of computing power and sophisticated chips to create a powerful and stable model. This is a blow to the U.S. administration, which has established a tight grip on AI chips.
The bottom line is not merely DeepSeek's low cost but the fact that we are entering a new era of AI price competitiveness. It's crucial to focus on which company will offer the best value, as this will significantly impact the industry and establish who the real AI mogul is.
Interested in DeepNext? Contact us today to learn more about the solution and elevate your AI strategy.
