DeepSeek update challenges OpenAI and Google dominance

DeepSeek is emerging as a formidable challenger in the global AI landscape with its latest release demonstrating significant performance improvements while maintaining an open-source approach. The Chinese startup’s new DeepSeek-R1-0528 model showcases remarkable gains in complex reasoning and coding capabilities, areas where even industry leaders struggle. What makes DeepSeek particularly noteworthy is its combination of competitive performance, open licensing, and cost-efficient development—a strategy that could reshape who controls and benefits from advanced AI technology.

The big picture: DeepSeek’s latest AI model, DeepSeek-R1-0528, is challenging Western AI giants like OpenAI and Google with significant performance improvements in reasoning, coding, and logic.

• The model achieved 87.5% accuracy on the AIME 2025 test, up from 70% in its previous version.
• It improved from 63.5% to 73.3% on the LiveCodeBench coding benchmark and more than doubled its performance on “Humanity’s Last Exam” from 8.5% to 17.7%.

Why this matters: Unlike its competitors, DeepSeek is releasing its powerful model under the MIT License, allowing developers to freely use, modify, and deploy it without restrictions.

• This open approach provides an alternative to the closed platforms and paywalled models offered by industry leaders.
• The model now supports JSON outputs and function calling, making it more accessible for developers building applications.

Behind the numbers: DeepSeek has achieved these advancements with remarkable cost efficiency compared to Western counterparts.

• Earlier versions were trained in just 55 days using approximately 2,000 GPUs at a cost of $5.58 million.
• This represents a fraction of typical training costs for comparable models developed in the United States.

Implications: DeepSeek’s rise signals a shift in the global AI landscape toward more distributed innovation and control.

• The company’s combination of strong technical performance, transparent licensing, and faster development cycles positions it as a serious competitor to established players.
• This could democratize access to advanced AI capabilities while challenging the dominance of current industry leaders.