Chinese AI Firm DeepSeek Challenges Industry Giants with Powerful New Open-Source Model

DeepSeek launches powerful open-source AI model V3, achieving top benchmark scores while undercutting competitor pricing.

Al Landes Avatar
Al Landes Avatar

By

Our editorial process is built on human expertise, ensuring that every article is reliable and trustworthy. AI helps us shape our content to be as accurate and engaging as possible.
Learn more about our commitment to integrity in our Code of Ethics.

Image credit: Wikimedia

Key Takeaways

  • New model matches or exceeds proprietary AI performance on major benchmarks
  • Achieves results with fraction of computing resources used by competitors
  • Offers competitive pricing while allowing commercial use

Why it matters: Techcrunch reports that DeepSeek has unveiled V3, its most advanced AI model to date, achieving benchmark scores that rival proprietary models while offering significantly lower costs. The breakthrough demonstrates growing competition in AI development from open-source alternatives.

The Big Picture: DeepSeek V3 represents major technical advances:

  • 671 billion total parameters (The Decoder)
  • Processes 60 tokens per second
  • Trained on 14.8 trillion tokens
  • Cost $5.576 million to develop

Benchmark Performance: The model sets new standards in key tests:

  • 90.2% on MATH 500 benchmark (The AI Track)
  • 88.5 on MMLU
  • 75.9 on MMLU-Pro
  • Strong coding performance on Codeforces and SWE

Cost Innovation: DeepSeek challenges industry pricing models:

  • $0.27 per million input tokens
  • $1.10 per million output tokens
  • Cache hits reduced to $0.07 per million tokens
  • Current V2 rates maintained until February 8th

Looking Forward: DeepSeek aims to “break through the architectural limitations of Transformer” while pursuing artificial general intelligence through incremental improvements. The company achieved its results using just 2,000 GPUs, compared to the 100,000 typically used by major competitors. 

Share this

At Gadget Review, our guides, reviews, and news are driven by thorough human expertise and use our Trust Rating system and the True Score. AI assists in refining our editorial process, ensuring that every article is engaging, clear and succinct. See how we write our content here →