DeepSeek, a Chinese artificial intelligence startup, has emerged as a formidable player in the sector, challenging established tech giants with its innovative and cost-effective models. Founded by hedge fund entrepreneur Liang Wenfeng, DeepSeek has developed the R1 reasoning model, marking a major milestone in the company’s mission to democratize advanced AI through open-source development.

The Hangzhou-based company has quickly gained prominence by releasing its R1 large language model at a fraction of the cost incurred by other vendors—while delivering capabilities and performance that rival industry leaders such as OpenAI and Google. The training cost of R1 was reported to be significantly lower than that of other large language models, challenging the widespread assumption that developing cutting-edge AI requires the vast computing power typically available only to the world’s biggest tech corporations.

What sets DeepSeek apart is its decision to release the R1 model under the MIT License, one of the most permissive open-source licenses available. This move allows anyone to use, modify, distribute and even commercialize the technology—sharply contrasting with the restrictive proprietary licenses used by competitors such as OpenAI and Google.

The R1 announcement signals a potential paradigm shift in the global AI landscape, both geopolitically and economically. DeepSeek’s release challenges the concentrated control over advanced AI capabilities that has long defined the industry.

Perhaps most remarkably, DeepSeek’s rise also challenges the notion of AI sovereignty, where innovation transcends national borders and raises critical questions about control, access and the future of global AI governance.