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Artificial Intelligence: DeepSeek Challenging AI Solutions through Open Sourced LLMs

Updated: Jan 30

With the continuous and rapid advancement of artificially intelligent products and solutions available in a, still, rapidly developing market, DeepSeek managed to raise awareness of the importance of the Open Sourced Community within the technology sector. As the domain continues to advance, various business organizations continue to move forward with new developments to widen the gap and better set themselves apart from industry competitors. How do we actively monitor the latest trends to remain knowledgeable and privy to these advancements?


In the most recent news, DeepSeek, a company dedicated to making significant contributions to the Open Source community, is generating considerable headlines due to its groundbreaking technological advances. These advancements are particularly focused on enhancing the quality and efficiency of question-and-response interactions, as well as improving the overall outputs generated by Artificial Intelligence (AI) interactions. To achieve these ambitious goals, DeepSeek is actively developing advanced algorithms that are specifically designed for their latest iteration of language models, known as DeepSeek LLMs, which is currently in its third version, V3.


The enhancements being introduced in V3 of DeepSeek LLMs are poised to revolutionize the way users engage with AI systems. By refining the algorithms that govern how these models process and generate language, DeepSeek aims to create a more intuitive and responsive interaction experience. This includes not only the accuracy of the responses provided but also the contextual understanding and relevance of the information delivered to users. As a result, interactions with AI will become more seamless and user-friendly, catering to the diverse needs of individuals and organizations alike.


DeepSeek's commitment to the Open Source community means that these technological advancements are not being developed in isolation. Instead, the company is encouraging collaboration among developers, researchers, and enthusiasts who are passionate about AI and language processing. By sharing insights, code, and methodologies within the Open Source framework, DeepSeek is fostering an environment where collective intelligence can flourish, leading to even greater innovations in the field.


In addition to improving the interaction capabilities of AI, DeepSeek is also focusing on the ethical implications of their advancements. They are actively addressing concerns related to bias, transparency, and accountability in AI systems. By implementing robust guidelines and best practices in the development of their algorithms, DeepSeek is ensuring that their contributions not only push the boundaries of technology but also uphold the values of fairness and inclusivity.


With the official release of DeepSeek LLMs V3 into the tech community, the potential impact of these developments on various sectors—ranging from education and customer service to healthcare and creative industries—cannot be overstated. The advancements in AI interactions promise to facilitate more meaningful and productive engagements, ultimately transforming the way humans and machines communicate.


Who is DeepSeek?

DeepSeek is emerging as a significant competitor in the artificial intelligence market among technology companies. It has positioned itself prominently in the market, openly listing itself as a competitor to notable organizations such as OpenAI, particularly in relation to OpenAI's Model o1. This strategic positioning highlights DeepSeek's ambition to carve out a substantial niche within the AI sector, aiming to offer innovative solutions that rival those of established industry leaders.


Recently, DeepSeek has made headlines by publicly challenging the prevailing trends in the AI industry, particularly concerning the escalating development costs associated with creating AI applications. The company has taken a bold stance against its competitors, advocating for more cost-effective approaches to AI development and infrastructure. This challenge has sparked discussions within the tech community, as DeepSeek presents its methodologies and technologies that promise to reduce the financial burden typically associated with AI projects. By focusing on minimizing the costs related to AI app development and the necessary infrastructure, DeepSeek aims to democratize access to advanced AI technologies, making them more attainable for a broader range of businesses and developers. This approach not only positions DeepSeek as a disruptive force in the market but also raises important questions about the sustainability and scalability of current AI development practices employed by larger organizations.


As the competition heats up, DeepSeek's commitment to innovation and cost reduction could potentially alter the dynamics of the AI industry, encouraging other companies to reevaluate their strategies and pricing models. The implications of DeepSeek's initiatives could lead to a more competitive landscape, ultimately benefiting consumers and businesses alike by fostering a greater diversity of AI solutions and reducing barriers to entry in the AI market.


What are their proprietary developments?

DeepSeek applauds itself for advancing LLMs and also contributing them to the Open Source Community. For those who may not know, Open Source is software solutions developed and maintained by broader development communities. Often advocated for by the broader Cloud Native Computing Foundation, seeing projects from incubation through General Availability (GA). This software is often adopted and configured by for profit organizations to maintain and release to broader enterprise account customers.


The software is also known for its improved inference speed. In AI, inference refers to the ability of the model to its own learned patterns that are developed through training data, and drawing a conclusion related about new data. Consider the process of inference as the softwares ability to learn and ability to see beyond what is immediately displayed. From previous versions, it incorporates:


  • Multi-head Latent Attention (MLA) - Incorporating a low-rank joint compression for attention keys and values to minimize key-value caching during inference.

  • DeepSeek MoE - Implementing more detailed experience levels and designating certain experts as shared resources within algorithms to.


What does this mean to me?

Many of the AI software options available for generative AI platforms, within the current market, offer similar functionality and capabilities. As this sector continues to grow and advance you can expect to see additional changes. In the meantime, its important to pay attention to the implementation of the products capabilities, the performance metrics, and the possible integrations. This includes how each performs in tandem with the underlying infrastructure. Some other benefits you can expect from building with DeepSeek LLMs are:


Dedication to Open-Source

Unlike many other advanced AI models that typically operate under proprietary licenses, limiting access to their core technologies, DeepSeek distinguishes itself by actively releasing its foundational technology as open source. This approach not only democratizes access to cutting-edge AI tools but also fosters a collaborative environment where researchers and developers from diverse backgrounds can engage with, modify, and enhance the models according to their specific needs and objectives. By making its technology available to the public, DeepSeek encourages innovation and experimentation, allowing users to contribute to the ongoing development of the models.


For individuals who are embarking on their journey in the field of artificial intelligence, DeepSeek offers a unique opportunity to learn and grow. New learners can immediately begin investigating the intricacies of AI by accessing the source code, understanding the underlying algorithms, and experimenting with various configurations to see how changes affect performance. This hands-on experience is invaluable for grasping complex concepts and gaining practical skills that are essential in today’s technology-driven landscape.


For those who advocate for community development and open-source principles, DeepSeek aligns perfectly with these values. The platform not only supports individual learning but also promotes collaborative projects where community members can come together to share insights, troubleshoot issues, and collectively advance the technology. This spirit of cooperation can lead to the creation of innovative applications and solutions that benefit a wider audience.


If you are seeking increased flexibility in build and configuration options, exploring DeepSeek's capabilities may prove to be particularly advantageous. The open-source nature of DeepSeek allows users to tailor the models to fit their unique requirements, whether that involves integrating specific functionalities, optimizing performance for particular tasks, or adapting the models to work within different environments. This level of customization is often not available in proprietary systems, where users must work within the constraints set by the developers.


DeepSeek's commitment to open-source technology not only sets it apart from many advanced AI models but also creates a rich ecosystem for learning, collaboration, and innovation. By providing access to its core technology, DeepSeek empowers users—be they novices, community advocates, or seasoned developers—to explore its vast capabilities and harness the power of artificial intelligence in ways that align with their goals and aspirations.


Improved Reasoning Capabilities

DeepSeek-V3 is an advanced model aimed at improving the intricate reasoning tasks, including but not limited to mathematical problem-solving, logical inference, and sophisticated decision-making scenarios. One of the standout features of DeepSeek-V3 is its ability to articulate and demonstrate its thought process, thereby providing users with a transparent view of how it arrives at conclusions, which is essential for trust and reliability in AI systems. In terms of performance enhancements, DeepSeek-V3 employs an innovative auxiliary-loss-free strategy aimed at achieving optimal load balancing. This strategic approach is particularly significant as it effectively mitigates the performance degradation that often accompanies traditional load balancing methods. By minimizing these adverse effects, DeepSeek-V3 ensures that its computational resources are utilized efficiently, thus maintaining high levels of performance even under demanding conditions.


Additionally, DeepSeek-V3 integrates advanced specifications derived from its predecessor, DeepSeek-R1, particularly the long-Chain-of-Thought (CoT) model. This model is pivotal in enhancing reasoning capabilities, as it allows the system to engage in a multi-step reasoning process. The incorporation of verification and reflection pattern algorithms further amplifies this capability, enabling the model to not only generate answers but also to critically evaluate its own reasoning. This self-reflective process is crucial in complex reasoning tasks where the accuracy of the output is paramount. The architecture of DeepSeek-V3 is designed to facilitate a deeper understanding of context and variations in various problem domains.


By leveraging sophisticated algorithms and models, it can discern patterns and relationships that may not be immediately apparent, leading to more informed and accurate conclusions. This makes DeepSeek-V3 not just a tool for generating answers, but a comprehensive reasoning partner capable of engaging with users in a meaningful way. Equipped with robust strategies for load balancing, enhanced reasoning capabilities through the CoT model, and a commitment to transparency in its thought processes, DeepSeek-V3 stands as a significant advancement in the field of AI reasoning. Its design reflects a deep understanding of the complexities involved in reasoning tasks, positioning it as an invaluable resource for users seeking reliable and sophisticated AI-driven solutions.


Achieving Cost Efficiency:

Compared to other high-performing reasoning models, DeepSeek is marketing itself as being more affordable to use for a variety of reasons that extend beyond mere cost. This affordability is achieved through the implementation of advanced architectures such as Multi-head Latent Attention (MLA) and DeepSeekMoE, which were discussed in detail in an earlier section of this article. These architectural innovations are designed not only to enhance the model's performance but also to optimize its resource utilization, leading to significant cost savings for users.


According to the DeepSeek V3 Technical Reports, if we assume that the rental prices for the H800 GPUs are set at $2 per GPU hour, DeepSeek demonstrates impressive efficiency in terms of computational resource usage. This efficiency is a crucial factor in determining the overall operational costs associated with deploying the model in real-world applications. The architecture's ability to process complex reasoning tasks with fewer computational resources means that users can achieve high levels of performance without incurring exorbitant expenses.

Training Costs

Pre-Training

Context Extension

Post-Training

Total

H800 GPU Hours

2664K

119K

5K

2788K

USD

$5.328M

$0.238M

$0.01M

$5.576M

The Multi-head Latent Attention mechanism allows DeepSeek to focus on different parts of the input data simultaneously, enhancing its ability to capture intricate patterns and relationships within the data. This leads to improved reasoning capabilities, which are essential for tasks that require deep understanding and analysis. The DeepSeekMoE architecture complements this by enabling the model to activate only the most relevant components for a given task, further reducing the computational burden and associated costs.


In practical terms, this means that organizations and researchers can leverage DeepSeek for their high-performance reasoning needs without the financial strain typically associated with such advanced technologies. The combination of sophisticated architecture and cost-effective operational strategies positions DeepSeek as a leading choice in the market of reasoning models, especially for those who are budget-conscious yet require robust performance.


The affordability of DeepSeek, particularly when compared to other high-performing models, is a result of its innovative design and efficient use of resources. This makes it an attractive option for a wide range of applications, from academic research to commercial implementations, where both performance and cost-effectiveness are paramount.

This level of performance efficiency is achieved through design optimization of previously referenced algorithms, frameworks, and hardware (infrastructure).


Advanced Developments for Chinese Languages:

While capable of handling multiple languages, DeepSeek performs particularly well on tasks related to Chinese language processing. LLaMa, another Open-Sourced model, consists of 11 times the activated parameters. Activated paramters refers to the subset of models that are used during the computation process to generate output. DeepSeek-V3 displays competive performance overall, with increased performance on specific evaluation language models such as BBH, DROP, and MMLU-series.


How do I get started?

If you are interested in interacting with an intelligent solution, you can download the DS app here. The browser version is available here.


For additional information related to the app and platform status, you can view the status page here. This includes detailed information related to incidents and outages.


In a previous article, "Navigating Artificial Intelligence", we discuss the various artificial intelligence solutions that are accessible not only through open-source platforms, but also through more established cloud service providers. The depth of the current Artificial Intelligence (AI) market is vast and can indeed feel overwhelming, particularly for organizations that are just beginning to explore the potential of AI technologies. With a consistently growing number of options available, ranging from machine learning frameworks to natural language processing tools, the process of selecting the right AI solutions for your specific needs can be time-consuming and complex.


However, despite these challenges, the return on investment (ROI) associated with effectively implementing AI technologies is extremely beneficial. Companies that successfully integrate AI into their operations often experience significant improvements in efficiency, productivity, and decision-making capabilities. These advancements can lead to cost savings, enhanced customer experiences, and the ability to stay competitive in a competitive market.


If you’re interested in understanding how to seamlessly integrate AI into your product portfolio or existing systems, or if you want to explore how you can leverage DeepSeek's improved benchmark metrics to gain a competitive edge, we encourage you to request a consultation session with us today. During this session, our team of experts will provide you with personalized insights and strategies tailored to your organization's unique goals and challenges. We will discuss the various AI tools and methodologies that can be utilized to drive innovation and efficiency within your business processes, ensuring that you are well-equipped to navigate the complexities of the AI sector. Don't miss the opportunity to enhance your understanding of AI and its potential impact on your organization. Reach out to us now to begin your journey towards AI integration and optimization!


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