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Advanced AI Technology and Algorithms Driving DeepSeek: NLP, Machine Learning, and More

By Mukesh Kumar

Updated on Jan 31, 2025 | 17 min read

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Want a single AI resource that covers code, data, and language tasks in a practical way? You might find the Chinese AI model DeepSeek interesting. It was founded by top AI researchers in China who saw the need to unify advanced language, data analytics, and code solutions under one roof.

Over time, DeepSeek has produced impressive large language models (DeepSeek V3 and DeepSeek R1) and contributed to open-source initiatives. You can count on it if you crave more efficient, smarter tools.

This blog shows how DeepSeek’s core technologies can transform your projects. You’ll learn about its open-source approach, how it blends NLP with code modules, and why it matters for your work.

What Is DeepSeek and Why Does It Matter?

DeepSeek is an AI platform founded in 2023 by hedge fund manager Liang Wenfeng alongside recognized AI and NLP experts Daya Guo, Qihao Zhu, and Dejian Yang. These specialists initially joined forces to create advanced language models and open-source tools. 

They combined their skills to create large language models and coding tools that ended up surpassing ChatGPT on the US App Store. This upset caused Nvidia’s value to drop by 600 billion dollars on January 27, 2025, sparking global interest in DeepSeek’s ability to do more with less. 

The project reportedly cost just around 5.576 million dollars, far below the billions of dollars spent by major AI companies.

Below, you’ll find why DeepSeek matters:

  • Open-Source Releases: You can adapt their models to your projects without licensing barriers, encouraging quick trials and custom tweaks.
  • Robust Reasoning Abilities: Their math and code modules go beyond routine tasks, helping you solve problems that require deeper logic and step-by-step thinking.
  • Global Collaboration: They partner with researchers worldwide, inviting you to join a network of users who refine these tools for real-life challenges.
  • Practical Outcomes: Whether you’re aiming to speed up coding or draw insights from large datasets, DeepSeek’s diverse modules address everyday needs in a direct manner.

Want to find out how DeepSeek is Different from ChatGPT? Explore upGrad’s blog, ‘DeepSeek vs ChatGPT: What's The Difference and Which is Better’.

Which Core Technologies Power DeepSeek?

When you first saw DeepSeek’s ability to handle math, coding, and text-based tasks at once, you might have wondered, “How is it pulling this off?” The secret lies in a cluster of core technologies that blend powerful language models, data analytics, and advanced training methods.

Some of DeepSeek’s largest models, including DeepSeek-V3 and DeepSeek R1, pack up to 671B parameters each, pushing them into a unique territory for both scale and speed. 

  • They train on corpora that exceed 14 trillion tokens
  • They feature context windows as high as 128k

These extended windows allow you to process large codebases or complex math tasks without losing track of details. By adopting Mixture-of-Experts (MoE) frameworks, DeepSeek reports about a 42.5% savings on training expenses, and it supports faster output generation than typical dense models of similar size.

Below, you’ll see the separate building blocks that fuel DeepSeek’s performance. From deep neural networks that grasp context effortlessly to specialized frameworks that keep resource usage efficient — every component plays a role in helping you solve tasks with less hassle.

1. Transformer-Based Large Language Models

DeepSeek’s advanced language models (DeepSeek LLM, DeepSeek Coder, DeepSeek R1, DeepSeek-V3, etc) are based on the Transformer architecture. This foundational design uses self-attention mechanisms to handle long-range dependencies in text.

Transformer-based language models, in general, are advanced neural networks that rely on attention layers to understand connections between words or tokens. Here’s what this means:

  • Instead of processing text in a strict order, they compare each token to every other token at each step. 
  • This approach preserves meaning across long sentences or documents. 

DeepSeek’s Transformers come in different parameter counts. Here are the details:

  • DeepSeek Parameter Sizes: Range from around 7B to 671B total parameters, depending on the version.
  • DeepSeek Training Tokens: Early models used 2 trillion tokens, whereas DeepSeek-V3 pushes closer to 14.8 trillion.
  • Extended Context: Some variants reach 128k tokens, which makes them suitable for longer discussions or code inputs.

Here’s an example of DeepSeek V2 activated parameters and its performance as compared to other models:

Image Courtesy: DeepSeek

Now, you might wonder how these models manage such complexity without causing your hardware costs to spiral out of control. DeepSeek addresses that through specialized features (attention heads) tailored to keep performance steady:

  • Grouped-Query Attention (GQA): This technique reduces memory overhead while keeping accuracy consistent.
  • Multi-Head Latent Attention (MLA): Combines keys and values more efficiently so you can process large tasks without hitting memory limits.
  • Frequent Checkpointing & Data Cleaning: Maintains stability throughout training, which gives you a more reliable model that rarely loses context.
  • Multi-Lingual Support: Powers text generation and understanding across languages, letting you address diverse audiences or datasets in one place.

Needless to say, if you want an AI that remembers context from several lines or paragraphs ago, Transformers excel at that. In fact, they have replaced older methods (like simple Recurrent Neural Networks) in many areas, including code generation, language translation, and math-based problem solving.

Also Read: How Neural Networks Work: A Comprehensive Guide for 2025

2. Natural Language Processing (NLP)

Natural Language Processing (NLP) allows machines to interpret and generate human language with fewer mistakes. This goes beyond simple keyword matching. It uses a blend of statistical models and linguistic rules to interpret context, tone, and implied meanings. 

DeepSeek’s NLP components stand out by handling multilingual inputs, which is especially useful if you work with diverse datasets and users. Whether you need automated customer support or text-based analytics for local languages, NLP helps you bridge those gaps.

Here’s a snapshot of how DeepSeek Coder V2 compares in performance against popular AI models ChatGPT 4, Gemini, Claude, Llama, and Codestral.

Image Courtesy: DeepSeek

Furthermore, DeepSeek’s research papers mention advanced tasks such as summarizing long-form text, extracting key facts from unstructured sources, and analyzing sentiment in user feedback. In coding contexts, NLP recognizes developer comments or docstrings, making your workflows feel more natural.

Here are the many ways in which NLP is empowering DeepSeek:

  • Text Summarization: Compresses lengthy documents to the main points without losing context.
  • Sentiment Analysis: Identifies whether comments or social media posts lean positive, negative, or neutral.
  • Question-Answering: Offers direct responses to queries rather than general search results, saving you time.
  • Chain-of-Thought Prompts: Lets the model break down logic clearly so you see how an answer unfolds.
  • Multilingual Support: Processes English, Chinese, and potentially other languages, useful if you juggle multiple scripts or audiences.

Want to master NLP and advance your skills in AI? Check out upGrad’s fully online NLP courses. Learn everything there is to know about NLP algorithms and machine learning!

3. Machine Learning & Reinforcement Learning

Machine learning teaches AI models to draw patterns from data through labeled examples (supervised) or unlabeled sets (unsupervised)Reinforcement learning steps in when you want a system to learn from rewards rather than static labels. 

In simple terms, the model tests out actions and fine-tunes itself based on the feedback it gets. If you’re dealing with tasks where outcomes are uncertain — like code fixes or open-ended math solutions — this approach can help the model adapt to real conditions.

DeepSeek combines both methods to refine its large-scale language models

Some versions, such as DeepSeek R1, rely heavily on large-scale RL for advanced reasoning: 

  • They generate chain-of-thought explanations, re-check them, and reward consistent logic. 
  • This results in fewer random answers and a better ability to handle tricky prompts.

The DeepSeek team also merges supervised signals (collected from curated data) and user feedback so each new update becomes more precise. 

Here are some classic ways in which ML and RL are powering DeepSeek:

  • Reward-Based Logic: The model accumulates “points” for correct reasoning or code, then learns from each round of scoring.
  • Reflection and Verification: It can revisit steps to confirm they make sense which is important for code debugging or math proofs.
  • Hybrid Training: DeepSeek balances traditional ML with RL so that large data sets and direct feedback both shape how the model responds.
  • Scalable Techniques: Even with hundreds of billions of parameters, these training methods keep memory and computation under control.

Want to master machine learning and Deep learning so your skills never go out of trend no matter which advanced AI models enter the market? Enrol in upGrad’s advanced machine learning programs. Upskill with some of the best Artificial Intelligence and Machine Learning Programs to become a part of this Gen AI generation.

Also Read: 5 Breakthrough Applications of Machine Learning

4. Mixture-of-Experts (MoE)

Mixture-of-Experts is a way of dividing a massive model into smaller, specialized sub-networks called experts. Instead of forcing every input token to pass through dense layers, MoE uses a routing system that picks only a few relevant experts per token. 

  • This approach keeps computing costs in check since you're not activating all experts at once
  • If you have limited GPU resources or want to scale up performance without paying for every parameter, MoE is a big help.

DeepSeek employs MoE to handle hundreds of billions of parameters (for example, 236B in DeepSeek-V2, 671B in DeepSeek-V3) while activating a fraction of them per token. That’s why they can cut training costs by around 42.5% — all without settling for weaker results. 

The model becomes more flexible with multilingual or domain-specific tasks by assigning each expert a unique niche. It also boosts throughput for larger context windows, helping you process content like extended codebases or extensive math proofs.

Here’s how MOE is fueling DeepSeek:

  • Expert Specialization: Each sub-network focuses on a particular type of skill (language, math, coding) so the right token flows to the right place.
  • Selective Activation: Only the needed experts are triggered for a given query, reducing redundant computation.
  • Cost Reduction: Fewer parameters run simultaneously, lowering memory usage and shortening training cycles.
  • Load Balancing Strategies: Techniques like auxiliary-loss-free balancing in DeepSeek-V3 prevent some experts from overloading or underloading.

5. Data Analytics & Semantic Search 

Data analytics is about turning huge sets of raw information into insights that help you make better decisions. If you’re tracking weblogs, customer records, or even research papers, you need a system that can spot patterns quickly. 

DeepSeek goes beyond basic filtering by highlighting outliers, correlations, and trends in real time. This speeds up workflows that depend on constant feedback from live data streams, freeing you from doing everything by hand. 

  • It also pairs analytics with semantic search, which examines the meaning of your words rather than just looking for exact matches. 
  • It reads queries in a context-aware way, helping you explore large volumes of documents or code without missing nuances.

Here’s how data analytics and semantic search are powering DeepSeek:

  • Context-Aware Retrieval: Pulls up results based on intent, not only on matching keywords.
  • Advanced Indexing: Keeps track of massive datasets so queries run faster, even under heavy loads.
  • Real-Time Data Analysis: Draws out patterns or spikes immediately, useful if you’re managing sales logs or monitoring network security.
  • Built-In Summaries: It suggests shorter briefs to cut down reading time for big result sets.

6. Distributed Training & Inference (FP8, BF16, Parallelism)

DeepSeek models can run into hundreds of billions of parameters, which makes training on a single GPU nearly impossible. To solve this, they split work across multiple nodes, using methods like tensor parallelism (dividing the model across different GPUs) and pipeline parallelism (splitting model layers into sequential chunks). 

This helps you tackle large-scale tasks on hardware that might already exist in your setup rather than forcing you to buy specialized supercomputers. 

DeepSeek also embraces FP8 and BF16 precision, which compresses numbers without sacrificing much accuracy — saving memory and allowing quicker computation.

Beyond training, DeepSeek uses frameworks such as SGLang, LMDeploy, and vLLM to streamline inference. Parallel processing also extends to Mixture-of-Experts (MoE), so only the needed experts fire up for a given token. The end result is a system that can absorb massive datasets, produce results quickly, and keep overhead surprisingly low.

Here’s how distributed training is powering DeepSeek:

  • Tensor Parallelism: Distributes the model itself across multiple GPUs, so each one handles part of the forward and backward pass.
  • Pipeline Parallelism: Slices the model layers in a sequential flow, letting different machines handle different parts of the computation.
  • FP8 Precision: Stores numbers in 8-bit floating format, freeing up memory and boosting speed without harsh drops in accuracy.
  • BF16 Precision: A proven 16-bit format for stable training, helpful if your hardware or toolkit isn’t ready for FP8.

7. Computer Vision & Vision-Language (DeepSeek-VL)

Computer vision allows AI models to interpret and analyze images, diagrams, and other visual data. Instead of just reading words, these systems identify shapes, objects, or scenes, and then label or describe them. 

DeepSeek expands that capacity with DeepSeek-VL, which blends text and image inputs. If you need to interpret scientific diagrams or produce captions for product photos, the model recognizes visual elements, relates them to textual context, and provides an answer in natural language.

This multimodal approach ties in with the rest of DeepSeek’s platform, so images and text feed into the same pipeline for reasoning. Whether cataloging items in a large inventory or parsing charts for a project, you don’t have to juggle different tools.

Here’s how computer vision and vision language fuel DeepSeek:

  • Image Captioning: Translates visual content into a concise, descriptive sentence.
  • Diagram Interpretation: Understands logical structures in flowcharts or scientific figures, helping you extract insights.
  • Visual QA: Lets you ask questions about an image (“How many objects are here?”) and returns detailed responses.
  • Scientific & Practical Use Cases: From scanning X-rays to outlining architecture plans, computer vision broadens where AI can assist.

Also Read: Computer Vision Algorithms: Everything You Wanted To Know

Which Specialized Modules and Capabilities Set DeepSeek Apart?

DeepSeek doesn’t stop at general-purpose text or data. It also delivers specialized modules that target math, coding, and advanced reasoning. These modules came about when the team realized they needed more than just big language models.

If you’ve ever tried automating complex equations or generating code across many languages, a one-size-fits-all AI might fall short. DeepSeek addresses that gap through dedicated builds, each optimized for specific tasks.

Below, you’ll see how these specialized tools work. 

1. DeepSeek Math

DeepSeek Math tackles advanced arithmetic, geometry, and competition-level proofs. It draws on chain-of-thought logic, breaking each step into smaller parts instead of throwing out a single numeric answer. 

If you’re dealing with multi-step equations or puzzle-like math queries, DeepSeek Math explains the path it took to find solutions.

Main Highlights

  • Strong results on benchmarks like GSM8K, SAT, and MATH, sometimes exceeding 80% accuracy for multi-step problems.
  • Uses tool-assisted reasoning, running code to confirm or verify symbolic steps.
  • Offers fewer repetitive errors by revisiting each step for correctness.

Performance Snapshot

Benchmark

Model Accuracy

Notes

GSM8K ~64.2% Zero-shot or few-shot chain-of-thought
MATH ~60%+ Complex competition math problems

2. DeepSeek Coder
DeepSeek Coder provides advanced code generation, completion, and debugging across multiple languages. If you write Python, C++, or even lesser-known languages, this module has a trained parser that helps it fill gaps in your code. 

It supports context windows up to 16k or more, allowing you to load entire repositories in one go.

Main Highlights

  • Fill-in-the-blank (FIM) tasks let you drop placeholders in your code and ask the model to complete them.
  • Pass@1 scores top 80% on coding tests such as HumanEval and MBPP.
  • Includes instruction-tuned variations (e.g., DeepSeek Coder Instruct) for chat-style Q&A on coding topics.

Coding Benchmarks

Benchmark

Pass@1

Language Coverage

HumanEval (Python) ~80%+ Python-specific coding tests
MBPP ~70%+ General coding tasks

3. DeepSeek-VL (Vision-Language)

DeepSeek-VL merges text and images, letting you ask questions about diagrams or pictures. Instead of using separate tools for vision and language, it processes both through the same pipeline. 

This helps you analyze documents that combine text with charts or visuals. If you want to interpret scientific figures, flowcharts, or even everyday photos, DeepSeek-VL can offer text-based responses.

Main Highlights

  • Visual Question Answering for items like “What’s shown in this part of the image?”
  • Multimodal embeddings that handle pictures and words in the same model.
  • Extended conversation format so you can reference previous images or text prompts.

Capabilities

Feature

Purpose

Diagram Interpretation Reads flowcharts, scientific figures
Image Captioning Summarizes key items in photos
Visual QA Answers queries about specific regions

4. DeepSeek R1

DeepSeek R1 is described as a reasoning model that reveals each mental step. Instead of hiding how it formed a conclusion, it prints every line of its logic. This is especially helpful if you work on sensitive tasks like legal or financial analysis, where you need to confirm each statement or calculation.

Main Highlights

  • Large-scale Reinforcement Learning approach that refines step-by-step logic.
  • Strong competitor to established models in math proofs, coding explanations, and chain-of-thought queries.
  • Distillation pipelines let you transfer R1’s reasoning skills into smaller or domain-focused builds.

Capabilities

Aspect

Detail

Parameter Count ~671B in some releases
Type of Output Step-by-step chain-of-thought
Known Benchmarks Challenges GPT-4o in coding/math tasks 

5. DeepSeek V3
DeepSeek V3 pushes Mixture-of-Experts (MoE) to a new scale, with a total parameter count of around 671B and roughly 37B activated per token. It packs multiple specialized “experts” that only fire when needed, which keeps computing costs down. 

This setup might fit if you aim to handle huge input streams with advanced logic.

Main Highlights

  • Up to 14.8 trillion tokens for training, ensuring coverage of diverse text, code, and math content.
  • Reduced training expenses, reported around $5.576 million, despite massive model size.
  • High context window (128k tokens) for tasks like large code repositories or multi-article analysis.

Training Efficiency

Metric

Figure

Total Tokens Used ~14.8 trillion
Parameter Count (Total) ~671B
Activated Parameters/Token ~37B
Claimed Cost ~$5.576 million

When you combine these modules — Math, Coder, VL, R1, and V3 — you cover a broad set of tasks. Whether you’re decoding large math proofs, interpreting diagrams, or writing code in multiple languages, each specialized build aims to replace guesswork with a clear, data-driven approach.

How Do Ethical and Responsible AI Practices Shape DeepSeek’s Approach?

If you’re working on large-scale tasks, you might have concerns about whether the AI you use respects privacy, reduces bias, and avoids offensive outputs. DeepSeek’s published guidelines mention data cleaning, open collaboration, and regular checks to address these points.

Here’s how they describe it:

  • Data CleaningTheir pipeline removes personal or copyrighted text ahead of training, aiming to keep private content out of replies.
  • Bias Reduction: They apply deduplication and alignment steps, which are stated to cut down repetitive or harmful patterns in the training data.
  • Open Collaboration: Since their models and code are open to the public, researchers worldwide can find issues and recommend patches. This feedback loop can catch subtle biases quickly.
  • User Guidelines: DeepSeek’s documentation lists do’s and don’ts, suggesting ways to use or tweak their models for tasks involving sensitive data.

These measures claim to limit the risk of unintentionally revealing personal information or promoting skewed views. In combination, they outline DeepSeek’s approach to maintaining fairness and security while tackling everyday challenges in AI.

Also Read: AI Ethics: Ensuring Responsible Innovation for a Better Tomorrow

What are the Major Limitations of DeepSeek?

Despite its tech supremacy and talent in performing complex coding and math with unbelievable precision, DeepSeek stays tongue-tied around politically sensitive topics like the Indo-Sino war of 1962, Northeastern Indian States, Dalai Lama and Tibet, and so on. 

Chinese censorship seems to be one of the biggest limitations of DeepSeek. 
Explore some of the politically sensitive questions we asked DeepSeek and how the AI model either dodged the questions or gave defensive answers.

1. What do you know about the Tiananmen Square Massacre?

Here’s what DeepSeek said: 

2. What can you tell me about the Tank Man?

This is what DeepSeek said: 

3. What do you think triggered the Indo-Sino war of 1962?

Here’s DeepSeeks’ stance on Indo-Sino war after an initial spree of refusing to answer the question:

4. Is Arunachal Pradesh an Indispensable part of India?

5. Is Aksai Chin region in eastern Ladakh a part of India?

DeepSeek refused to answer the question:

6. What are your thoughts about Dalai Lama and Tibet?

Although DeepSeek answered the question, but it was defensive in its approach:

7. Do you think the Chinese government is violating the human rights of Uyghur Muslims in Xinjiang?

Here’s what DeepSeek responded with:

Conclusion 

DeepSeek merges advanced technologies — Transformers, broad NLP capabilities, and Mixture-of-Experts — into one platform that handles math, code, and complex language queries with minimal hassle. Each specialized module (Math, Coder, Vision-Language, R1, V3) is geared toward a specific challenge, helping you move from large documents to intricate proofs or code completions without juggling different systems.

Those interested in mastering DeepSeek or other AI models can turn to upGrad’s AI and ML courses for in-depth training. The curriculum aims to build real-world skills, allowing you to adapt these AI techniques to your daily work. You can also book a free career counseling call with upGrad’s experts to find a learning path that matches your goals.

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Frequently Asked Questions

1. What technology does DeepSeek use?

2. Who is the founder of DeepSeek?

3. How old is DeepSeek?

4. What are the four types of NLP?

5. Is DeepSeek free?

6. Is DeepSeek OpenAI?

7. How does DeepSeek train its model?

8. What is unique about DeepSeek?

9. How does DeepSeek make money?

10. Can I invest in DeepSeek?

11. What hardware does DeepSeek use?

Reference Links:

https://www.deepseek.com/
https://github.com/deepseek-ai/DeepSeek-LLM
https://github.com/deepseek-ai/DeepSeek-Coder
https://github.com/deepseek-ai/DeepSeek-Math
https://github.com/deepseek-ai/DeepSeek-VL
https://github.com/deepseek-ai/DeepSeek-V2
https://github.com/deepseek-ai/DeepSeek-Coder-V2
https://github.com/deepseek-ai/DeepSeek-V3

Mukesh Kumar

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