Small Business Glossary

What is DeepSeek?

Contents

DeepSeek is an AI company from China that developed a powerful, cost-efficient artificial intelligence system. Think of it as a highly advanced computer program trained to understand and generate human-like text, solve problems, and analyze data. Its standout features:

Standout features:

  1. Affordability:
    Most cutting-edge AI systems (like ChatGPT) require hundreds of millions of dollars to develop. DeepSeek built its flagship model, called R1, for under $6 million using older hardware. This challenges the idea that only tech giants with massive budgets can compete in AI.
  2. Transparency:
    Unlike many AI tools that act like "black boxes," DeepSeek’s system can show its step-by-step reasoning for answers. For example, if you ask it to calculate a business budget, it can break down the math and logic behind its suggestions.
  3. Open-Source Access:
    The core technology is publicly available (like a recipe everyone can use), allowing businesses or developers to adapt it for free, rather than paying subscription fees to closed systems like OpenAI.
  4. Efficiency:
    It achieves high performance without requiring the latest, most expensive chips—a significant advantage in regions (or businesses) with limited access to cutting-edge tech.

Why It Matters for Businesses

For small businesses, DeepSeek offers tools that were previously too expensive or complex to access:

  • Automate repetitive tasks (e.g., customer service, invoicing).
  • Generate reports, marketing content, or financial forecasts.
  • Analyze data trends (sales, customer feedback) without hiring specialists.
  • Provide multilingual support or personalized customer interactions.

Key Considerations

  • Cost: Its services are far cheaper than competitors (up to 50x lower cost).
  • Bias: Like all AI, it may reflect biases from its training data, particularly shaped by Chinese regulatory standards.
  • Practicality: It’s designed to work with everyday tech infrastructure, lowering adoption barriers.

In short, DeepSeek represents a shift toward democratizing AI—making advanced tools accessible and affordable for smaller players, not just corporations.

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