Is DeepSeek Better Than OpenAI? 10 Myths and Facts You Need to Know

DeepSeek AI has been making headlines, but not everything you hear is true. Some claim it is beating OpenAI, while others say it breaks the rules.

Let’s break down the top myths about DeepSeek and find out what’s really happening.

Myth #1: DeepSeek Built Its AI for $5.6 Million

Fact: This number only covers the final training run. DeepSeek reportedly owns 50,000 Nvidia Hopper GPUs, which cost around $1 billion. The real cost is much higher.

Myth #2: DeepSeek Broke the Rules to Build Its AI

Fact: DeepSeek followed export control laws and used H800 GPUs instead of the more powerful H100s. They found smart ways to optimize their model within these limits.

Myth #3: DeepSeek Has Beaten OpenAI

Fact: DeepSeek’s R1 model is as strong as OpenAI’s GPT-4.0 reasoning model (01), but OpenAI has already released a more advanced GPT-4.0 (03). DeepSeek is more efficient, but OpenAI still leads in overall power.

Myth #4: DeepSeek’s AI Is the Same as Other Models

Fact: Different AI models serve different purposes. DeepSeek’s base model (V3) compares to GPT-4.0, while its reasoning model (R1) is closer to OpenAI’s GPT-4.0 (01). Not all models can be compared directly.

Myth #5: DeepSeek’s “Visible Chain of Thought” Is a Big Innovation

Fact: DeepSeek shows its reasoning steps, while OpenAI does not. However, this is just a design choice, not a breakthrough in AI technology.

Myth #6: DeepSeek Built Everything from Scratch

Fact: DeepSeek likely used model distillation, where it learned from ChatGPT’s responses to train its own model. Many companies do this, but it violates OpenAI’s terms of service.

Myth #7: Using DeepSeek AI Is Unsafe

Fact: If you use DeepSeek’s official app, your data goes to China. But there are ways to use its models while keeping your data in the U.S., like using Perplexity AI, Venice AI, or running it locally on your own device.

Myth #8: DeepSeek Will Hurt Nvidia’s Business

Fact: More efficient AI models mean more demand for AI chips. Instead of hurting Nvidia, this might actually increase sales of AI hardware.

Myth #9: DeepSeek Is Bad for U.S. Tech Companies

Fact: Some companies benefit from DeepSeek’s success. Amazon can now offer cheaper AI services. Meta can use AI to improve ads. Apple can improve AI on its devices.

Myth #10: DeepSeek Is China’s “Sputnik Moment” in AI

Fact: The Sputnik moment was when the USSR had tech the U.S. did not. But DeepSeek’s methods are public and based on known AI advancements. A better comparison is Google in 2004, when they showed how to build cheaper, more efficient servers.

What This Means for You

1. Free Access to Better AI

DeepSeek’s R1 model and OpenAI’s GPT-4.0 (03 mini) are now available for free. These models solve complex problems and write better code without a paid plan.

2. Data Privacy Concerns

If you care about data privacy, avoid DeepSeek’s official app. Instead, use platforms like Perplexity AI or run the models locally on your own device.

3. Should You Switch to DeepSeek?

Don’t switch just because it’s new. If DeepSeek’s low-cost AI helps you, try it. But if you already use ChatGPT and like it, there’s no urgent reason to switch.

Final Thoughts

DeepSeek AI is a big step forward, but it’s not a total game-changer. It offers cheaper and more efficient AI, but OpenAI still leads in power and performance. The best part? AI is getting better for all of us.

Source: Jeff Su (YouTube)