3 Reasons Why DeepSeek is Better than ChatGPT

A new AI model named DeepSeek, developed by a startup in China, is currently causing a stir in the U.S. tech industry.

Why is this happening? Because it’s outperforming all major Big Tech AI models—and reportedly, it’s achieving this with fewer resources and less funding.

Here’s how the AI industry is reacting to DeepSeek in comparison to OpenAI’s prominent chatbot, ChatGPT.

DeepSeek’s outputs for certain tasks seemingly beat ChatGPT
While users recognize that OpenAI’s ChatGPT excels in conversational or creative tasks and is up-to-date with news and current events, the consensus is that the AI outshines it in more technical areas.

If you’re using AI chatbots for logical reasoning, coding, or solving mathematical problems, DeepSeek might be the better choice due to its superior performance in these tasks.

For many standard queries, however, DeepSeek and ChatGPT provide similar results. Despite this similarity, DeepSeek presents a significant challenge to OpenAI and ChatGPT, primarily because it is free for most use cases.

In contrast, regular users of ChatGPT may need to pay for its premium services at $20 per month.

This price disparity becomes even more critical for companies that rely on AI model API access.

Given the negligible difference in output quality between the two models, businesses might find the cost savings too significant to ignore, prompting a shift from ChatGPT to DeepSeek.

DeepSeek’s outputs for certain tasks seemingly beat ChatGPT

DeepSeek is Open
AI performance can vary widely depending on the specific needs of the user, and while DeepSeek may excel in many areas, there are still scenarios where other AI models might provide better outputs

One notable issue with it is that some responses from its hosted chatbot are censored, reflecting the influence of Chinese government regulations.

This is indeed a concern for users seeking unrestricted access to information.

However, it offers a significant advantage in terms of openness, a commitment that OpenAI had originally promised but moved away from.

It has made its model, the DeepSeek R1, available as open-source. This allows anyone to download and run the model locally on their own devices, ensuring that user data remains private and is not shared with DeepSeek.

Moreover, by running the model locally, users can circumvent any potential censorship or biases in the results, enhancing the model’s utility and trustworthiness.

DeepSeek is More Affordable than OpenAI
OpenAI’s training costs for each of its models can run into tens of millions of dollars. In contrast, DeepSeek has managed to train its model for just over $5.5 million, demonstrating significant cost-efficiency.

This cost difference is also reflected in the pricing offered to consumers. DeepSeek’s API access for the DeepSeek-R1 model begins at $0.14 per million tokens, which equates to roughly 750,000 words.

When compared to OpenAI’s o1 model, which is priced at $7.50 per million tokens, the price gap is substantial.