DeepSeek takes break for Lunar New Year after AI breakthrough stuns tech world

Chinese AI start-up DeepSeek has gone quiet, taking a break for Lunar New Year after an impressive surge in global attention, reports say.

Founded in 2023, DeepSeek has quickly gained recognition for its low-cost AI models, with its app topping U.S. iPhone App Store charts. The company's breakthrough has positioned it as a direct competitor to major players like OpenAI and Anthropic, sparking debates within the tech industry.

Investors have questioned the enormous investments made by tech giants in AI infrastructure, which led to a US$94 billion loss for top tech moguls, according to Bloomberg.

Despite the buzz, DeepSeek has opted for a low-profile approach, with staff taking time off for traditional Lunar New Year family reunions. The company's headquarters in Hangzhou, located in a building primarily occupied by finance firms, has remained quiet, reported the South China Morning Post. Security reports indicate a rise in uninvited visitors hoping to catch a glimpse of the start-up.

Don't miss: DeepSeek for dummies: 101 on how marketers can capitalise on the trend

On January 27, DeepSeek released its new AI image-generation model, Janus-Pro, which reportedly outperformed OpenAI's DALL-E 3 and Stability AI's Stable Diffusion in benchmark tests. This release adds to the list of significant achievements from the company's rapid rise.

Marc Andreessen, a leading tech investor, referred to DeepSeek's R1 model as a "Sputnik moment," drawing comparisons to the surprise caused by the Soviet Union's 1957 satellite launch. Liang Wenfeng, DeepSeek's founder, admitted surprise at the overwhelming response, particularly the sensitivity surrounding pricing, as the company continues to navigate the complex AI landscape.

Experts MARKETING-INTERACTIVE spoke to agreed that DeepSeek stands out primarily due to its cost efficiency and market positioning. However, caution remains that success in generative AI depends not only on performance but also on the quality and scale of data, alongside building long-term trust.

While DeepSeek's cost-effective models have gained attention, experts argue that it's unlikely to replace ChatGPT right away. DeepSeek's reliance on Chinese data sources limits its ability to match ChatGPT's effectiveness across international markets, said Timmy Kwok, head of performance, Omnicom Media Group.

For marketers, DeepSeek presents opportunities to diversify AI tools and optimise costs. Its lower training costs make it easier to transition from ChatGPT to a custom model, especially for campaigns in China.

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