Will DeepSeek Shake OpenAI and NVIDIA?

AI is moving so fast these days that every big update can feel like a roller coaster. One minute we’re celebrating, and the next we’re freaking out. DeepSeek is the latest buzzworthy name in the mix, and people can’t stop talking about whether it could shake up the likes of OpenAI’s ChatGPT and hardware champs like NVIDIA.

What’s DeepSeek All About?

DeepSeek is showing off a model called R1, which they describe as a “reasoning model.” In plain English, it’s similar to ChatGPT but with one big twist: DeepSeek says it can train this model way cheaper than OpenAI can train GPT. Rumor has it they pulled it off for around $6 million, whereas OpenAI apparently spent north of $100 million on its GPT models.

And here’s the kicker: DeepSeek says they run it all using NVIDIA A100-series chips, which are still pretty powerful but definitely more budget-friendly compared to NVIDIA’s top-tier offerings. Even more intriguing, DeepSeek claims their approach is super memory-efficient, so they don’t need as much hardware muscle (or money) to keep things running smoothly.

Could DeepSeek Overtake the Big Players?

Short version: it’s not that simple. Yes, DeepSeek might offer cheaper and more efficient training, but raw tech is only part of what it takes to topple industry giants. Keep in mind, companies like OpenAI and Apple have built massive brand recognition, and that kind of name power doesn’t just vanish overnight.

Think back to when the iPhone first launched. A bunch of competitors—some from China—quickly released cheaper phones with similar features. But Apple still thrived because it was the original disruptor and had a killer brand. The same could happen with AI: ChatGPT and other US-based tools got there first, captured the world’s attention, and gained trust in the process. That’s not easy to unseat.

Why Should You Care?

Every time there’s a major AI breakthrough, you’ll see new tools and models popping up all over the place. If you try to chase every single one, you’ll end up stressed and behind the curve. Instead, it’s smarter to focus on the fundamentals of AI. If you know what’s going on under the hood, you’ll have an easier time adapting to any fresh developments that come your way.

So, yes, DeepSeek is interesting—and definitely worth watching—but don’t let the hype distract you from mastering the core skills that really matter in the long run.