Hangzhou DeepSeek Artificial Intelligence Basic Technology Research Co., Ltd., doing business as DeepSeek, is a Chinese artificial intelligence (AI) company that develops large language models (LLMs). Based in Hangzhou, Zhejiang, DeepSeek is owned and funded by High-Flyer, a Chinese hedge fund. DeepSeek was founded in July 2023 by Liang Wenfeng, the co-founder of High-Flyer, who also serves as the CEO for both of the companies. The company launched an eponymous chatbot alongside its DeepSeek-R1 model in January 2025. DeepSeek-R1 provided responses comparable to other contemporary large language models, such as OpenAI's GPT-4 and o1. Its training cost was reported to be significantly lower than other LLMs. The company claims that it trained its V3 model for US$6 million—far less than the US$100 million cost for OpenAI's GPT-4 in 2023—and using approximately one-tenth the computing power consumed by Meta's comparable model, Llama 3.1. DeepSeek's success against larger and more established rivals has been described as "upending AI". DeepSeek's models are described as "open-weight", meaning the exact parameters are openly shared, but the training data is not openly licensed. Since the January 2025 debut of DeepSeek-R1, the company has made its new models available under free and open-source software licenses, primarily the MIT License. The company reportedly recruits AI researchers from top Chinese universities and also hires from outside traditional computer science fields to broaden its models' knowledge and capabilities. DeepSeek significantly reduced training expenses for their R1 model by incorporating techniques such as mixture of experts (MoE) layers. The company also trained its models during ongoing trade restrictions on AI chip exports to China, using weaker AI chips intended for export and employing fewer units overall. Observers say this breakthrough sent "shock waves" through the industry which were described as triggering a "Sputnik moment" for the US in the field of artificial intelligence, particularly due to its open-source, cost-effective, and high-performing AI models. This threatened established AI hardware leaders such as Nvidia; Nvidia's share price dropped sharply, losing US$600 billion in market value, the largest single-company decline in U.S. stock market history. == History == === Founding and early years (2016–2023) === In February 2016, High-Flyer was co-founded by AI enthusiast Liang Wenfeng, who had been trading since the 2008 financial crisis while attending Zhejiang University. The company began stock trading using a GPU-dependent deep learning model on 21 October 2016; before then, it had used CPU-based linear models. By the end of 2017, most of its trading was driven by AI. Liang established High-Flyer as a hedge fund focused on developing and using AI trading algorithms, and by 2021 the firm was using AI exclusively, often using Nvidia chips. In 2019, the company began constructing its first computing cluster, Fire-Flyer, at a cost of 200 million yuan; it contained 1,100 GPUs interconnected at 200 Gbit/s and was retired after 1.5 years in operation. By 2021, Liang had started buying large quantities of Nvidia GPUs for an AI project, reportedly obtaining 10,000 Nvidia A100 GPUs before the United States restricted chip sales to China. Computing cluster Fire-Flyer 2 began construction in 2021 with a budget of 1 billion yuan. It was reported that in 2022, Fire-Flyer 2's capacity had been used at over 96%, totaling 56.74 million GPU hours. 27% was used to support scientific computing outside the company. During 2022, Fire-Flyer 2 had 5,000 PCIe A100 GPUs in 625 nodes, each containing 8 GPUs. At the time, it exclusively used PCIe instead of the DGX version of A100, since at the time the models it trained could fit within a single 40 GB GPU VRAM and so there was no need for the higher bandwidth of DGX (i.e., it required only data parallelism but not model parallelism). Later, it incorporated NVLinks and NCCL (Nvidia Collective Communications Library) to train larger models that required model parallelism. On 14 April 2023, High-Flyer announced the launch of an artificial general intelligence (AGI) research lab, stating that the new lab would focus on developing AI tools unrelated to the firm's financial business. Two months later, on 17 July 2023, that lab was spun off into an independent company, DeepSeek, with High-Flyer as its principal investor and backer. Venture capital investors were reluctant to provide funding, as they considered it unlikely that the venture would be able to quickly generate an "exit". === Model releases since 2023 === DeepSeek released its first model, DeepSeek Coder, on 2 November 2023, followed by the DeepSeek-LLM series on 29 November 2023. In January 2024, it released two DeepSeek-MoE models (Base and Chat), and in April 3 DeepSeek-Math models (Base, Instruct, and RL). DeepSeek-V2 was released in May 2024, followed a month later by the DeepSeek-Coder V2 series. In September 2024, DeepSeek V2.5 was introduced and revised in December. On 20 November 2024, the preview of DeepSeek-R1-Lite became available via chat. In December, DeepSeek-V3-Base and DeepSeek-V3 (chat) were released. On 20 January 2025, DeepSeek launched the DeepSeek chatbot—based on the DeepSeek-R1 model—free for iOS and Android. By 27 January, DeepSeek surpassed ChatGPT as the most downloaded freeware app on the iOS App Store in the United States, triggering an 18% drop in Nvidia's share price. On 24 March 2025, DeepSeek released DeepSeek-V3-0324 under the MIT License. On 28 May 2025, DeepSeek released DeepSeek-R1-0528 under the MIT License. The model has been noted for more tightly following official Chinese Communist Party ideology and censorship in its answers to questions than prior models. On 21 August 2025, DeepSeek released DeepSeek V3.1 under the MIT License. This model features a hybrid architecture with thinking and non-thinking modes. It also surpasses prior models like V3 and R1, by over 40% on certain benchmarks like SWE-bench and Terminal-bench. It was updated to V3.1-Terminus on 22 September 2025. V3.2-Exp was released on 29 September 2025. It uses DeepSeek Sparse Attention, a more efficient attention mechanism based on previous research published in February. DeepSeek-V3.2 was released on 1 December 2025, alongside a DeepSeek-V3.2-Speciale variant that focused on reasoning. In February 2026, Anthropic accused DeepSeek of using thousands of fraudulent accounts to generate millions of conversations with Claude to train its own large language models. In April 2026, investors began speaking with DeepSeek for a $300 million funding round, which would bring DeepSeek to a total valuation of $10 billion. On April 24, 2026, DeepSeek released a preview of its V4 series, including the 1.6-trillion parameter DeepSeek-V4-Pro and the 284-billion parameter DeepSeek-V4-Flash, both featuring a 1-million token context window, under the MIT License. DeepSeek's V4 LLM has been adopted by key semiconductor manufacturers and artificial intelligence chipmakers such as Huawei and Cambricon. == Company operation == DeepSeek is headquartered in Hangzhou, Zhejiang, and is owned and funded by High-Flyer. Its co-founder, Liang Wenfeng, serves as CEO. As of May 2024, Liang personally held an 84% stake in DeepSeek through two shell corporations. === Strategy === DeepSeek has stated that it focuses on research and does not have immediate plans for commercialization. This posture also means it can skirt certain provisions of China's AI regulations aimed at consumer-facing technologies. DeepSeek's hiring approach emphasizes skills over lengthy work experience, resulting in many hires fresh out of university. The company likewise recruits individuals without computer science backgrounds to expand the range of expertise incorporated into the models, for instance in poetry or advanced mathematics. According to The New York Times, dozens of DeepSeek researchers have or have previously had affiliations with People's Liberation Army laboratories and the Seven Sons of National Defence. Due to the impact of United States restrictions on chips, DeepSeek refined its algorithms to maximise computational efficiency and thereby leveraged older hardware and reduced energy consumption. DeepSeek also expanded on the African continent as it offers more affordable and less power-hungry AI solutions. The company has bolstered African language models and generated a number of startups, for example in Nairobi. Along with Huawei's storage and cloud computing services, the impact on the tech scene in sub-saharan Africa is considerable. DeepSeek offers local data sovereignty and more flexibility compared to Western AI platforms. == Training framework == High-Flyer/DeepSeek had operated at least two primary computing clusters: Fire-Flyer (萤火一号) and Fire-Flyer 2 (萤火二号). Fire-Flyer 1 was constructed in 2019 and was retired after 1.5 years of operation. Fi
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