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DeepSeek vs ChatGPT: What's The Difference and Which is Better

By Mukesh Kumar

Updated on Jan 30, 2025 | 12 min read

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DeepseekR1 is shaking up the AI world, challenging giants like ChatGPT with its groundbreaking approach. Built for just $6 million, it’s not just another chatbot—it’s a wake-up call to the industry, proving that innovation doesn’t need to come with a hefty price tag.

Users can interact with DeepseekR1 for free, enjoying 50 tokens daily. On the other hand, developers gain access to its capabilities at an unmatched rate of $0.14 per million tokens—far lower than ChatGPT’s pricing structure, making it a budget-friendly option for developers worldwide.

One key difference lies in token utilization. DeepseekR1 focuses on efficient token usage, allowing users to achieve more with fewer tokens compared to ChatGPT. This optimization sets it apart, especially for resource-conscious users and businesses.

Will DeepseekR1 redefine the AI world? That’s the question on everyone’s mind. In this blog, we will compare DeepSeek R1 and ChatGPT based on different sets of parameters.

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Difference Between DeepSeek R1 and ChatGPT

Feature

DeepSeek R1

ChatGPT

Focus Advanced Reasoning, Cost-Effectiveness General-purpose conversational AI, creative content generation
Strengths Strong reasoning abilities, competitive performance on benchmarks, cost-effective, open-source User-friendly interface, large user base, wide range of applications, strong conversational abilities
Weaknesses Limited public information, may lack multimodal capabilities Can sometimes hallucinate information, potential for bias, can be costly
Cost
  • Free for users; $0.14/million tokens for developers
  • Free
  • Plus ($20)
  • Pro ($200)
Open-Source Open-source Proprietary
Key Use Cases Chatbots requiring high accuracy and complex reasoning, cost-sensitive applications, highly customized chatbots Customer service bots, chatbots, creative content generation, educational applications
Development Approach Focus on cost-effectiveness and efficient training methods Large-scale investment in training data and computing power

 

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What is DeepSeek R1?

DeepSeek is a Chinese artificial intelligence company that has made headlines recently due to the impressive capabilities of its large language models (LLMs) and cost-effective approach.

Here's what you should know about DeepSeek:

Key Features of Deep Seek:

  • Advanced Reasoning: DeepSeek's models, particularly DeepSeek R1, excel in reasoning tasks, demonstrating strong performance in solving complex problems and providing accurate, insightful answers.
    • The graph below depicts the benchmark performance of Deepseek in comparison to other exiting models.
  • Cost-Effectiveness: A major differentiator is its focus on cost-efficiency. DeepSeek models are trained at a fraction of the cost compared to models from companies like OpenAI and Google, making them more accessible to a wider range of users and organizations.   
  • Open-Source Approach: DeepSeek champions open-source AI development, releasing many of its models under open-source licenses. This fosters collaboration, innovation, and democratizes access to advanced AI technology.   
  • High-Performance Models: DeepSeek models, such as DeepSeek R1 and DeepSeek-V3, have demonstrated competitive performance on various benchmarks, rivaling leading models from major AI players.   
  • Focus on Real-World Applications: DeepSeek aims to develop AI solutions that address real-world challenges and have a tangible impact on society.

Different Models of DeepSeek:

  • DeepSeek R1: This model has gained significant recognition for its advanced reasoning capabilities and ability to rival leading LLMs like ChatGPT.   
  • DeepSeek-V3: A powerful model with 671 billion parameters, placing it among the largest and most advanced language models available.   

Notable Aspects of DeepSeek:

  • Market Disruption: DeepSeek has challenged the conventional wisdom that significant AI advancements require massive investments, disrupting the established order in the AI industry.   
  • Global Impact: Its success has shifted the AI power balance, increased competition, and accelerated the pace of AI development worldwide.   
  • Ethical Considerations: DeepSeek's open-source approach and focus on cost-effectiveness raise important ethical considerations related to accessibility, equity, and the responsible use of AI.   

What Global Leaders Are Saying About DeepSeek?

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What is ChatGPT?

ChatGPT is an advanced AI chatbot developed by OpenAI. It leverages a sophisticated language model to engage in human-like conversations, generate creative text formats, and answer your questions in an informative way.

Key Features of ChatGPT:

  • Conversational Abilities: ChatGPT excels at simulating human-like conversations, making it suitable for chatbots, customer service interactions, and casual dialogue.
  • Text Generation: It can generate various creative text formats, including stories, poems, articles, code, scripts, and even musical pieces.
  • Question Answering: ChatGPT can provide comprehensive and informative answers to a wide range of questions, drawing on its vast knowledge base.
  • Translation: It can effectively translate text between multiple languages.
  • Summarization: ChatGPT can condense lengthy texts into concise summaries while maintaining key information.

Different Models of ChatGPT

  • GPT-3.5: The foundational model for the initial versions of ChatGPT, known for its strong conversational abilities and text generation capabilities.
  • GPT-4: The latest and most advanced model, featuring improved performance in reasoning, creativity, and following instructions. It also exhibits multimodal capabilities, allowing it to understand and generate images in addition to text.

Note: There are many other ChatGPT models.

Key Considerations About ChatGPT

  • Hallucinations: ChatGPT may sometimes generate incorrect or misleading information (hallucinations).
  • Bias: Like many AI models, ChatGPT can reflect biases present in the data it was trained on.
  • Ethical Concerns: The potential for misuse, such as generating misinformation or harmful content, needs to be carefully considered.

When to Use: DeepSeek vs ChatGPT

DeepSeek R1 might be a better choice for you if:

  • Reasoning and Accuracy are Paramount: DeepSeek R1 excels in tasks requiring advanced reasoning and precise responses. If your chatbot needs to handle complex queries, solve problems, or provide highly accurate information, DeepSeek R1 could be a strong contender.
  • Cost-Effectiveness is Crucial: DeepSeek R1 is developed at a significantly lower cost compared to ChatGPT. This could translate to lower operational expenses for your chatbot, especially if you're dealing with high volumes of user interactions.
  • Open-Source Flexibility is Desired: DeepSeek R1's open-source nature allows for greater customization and integration with your existing systems. This flexibility can be valuable for developers seeking to tailor the chatbot's behavior and capabilities to specific needs.

ChatGPT might be a better choice for you if:

  • General Conversational Abilities are Prioritized: ChatGPT is renowned for its strong conversational skills, making it well-suited for chatbots that need to engage in natural, human-like interactions, such as customer service bots or casual conversational companions.
  • A Wide Range of Applications is Required: ChatGPT's versatility allows it to handle a broad spectrum of tasks, from answering questions and generating text to translating languages and creating different kinds of creative content.
  • Ease of Use and Integration are Key: ChatGPT offers a user-friendly interface and readily available APIs, making it relatively easy to integrate into various applications and platforms.

Key Difference  Between DeepSeek R1 and ChatGPT

1. Training Approach

  • DeepSeek-R1:
    • Utilizes reinforcement learning (RL) as the primary method to improve reasoning without relying initially on supervised fine-tuning (SFT) in its initial version (DeepSeek-R1-Zero).
    • Cold-start data is incorporated in DeepSeek-R1 to refine reasoning capabilities, with multi-stage RL enhancing performance.
    • Focuses on reasoning-oriented RL, where reasoning behaviors such as Chain of Thought (CoT) are incentivized.
  • ChatGPT:
    • Follows a more traditional path of training using supervised fine-tuning on large datasets, followed by reinforcement learning from human feedback (RLHF) for alignment with user preferences.
    • RLHF emphasizes human alignment rather than specific reasoning tasks.

2. Reasoning Capabilities

  • DeepSeek-R1:
    • Explicitly designed to enhance complex reasoning capabilities such as long-chain reasoning in math, coding, and logic tasks.
    • Introduces self-verification and reflection behaviors during RL training, allowing the model to reevaluate and refine its thought processes.
    • Benchmarks indicate superior performance in STEM domains, achieving higher scores on tasks like AIME, MATH-500, and Codeforces compared to other models, including some from OpenAI.
  • ChatGPT:
    • Offers general-purpose reasoning capabilities but isn't specifically optimized for complex reasoning tasks like mathematics or programming competitions.
    • Lacks features like self-verification or extended Chain of Thought reasoning specifically incentivized in DeepSeek-R1.

3. Distillation and Model Efficiency

  • DeepSeek-R1:
    • Enables distillation of reasoning capabilities from larger models (e.g., DeepSeek-R1) to smaller models (e.g., Qwen and Llama series).
    • Distilled models (e.g., DeepSeek-R1-Distill-Qwen-7B) retain strong reasoning abilities despite reduced size.
    • Smaller distilled models often outperform non-reasoning models like GPT-4o-0513 on reasoning benchmarks.
  • ChatGPT:
    • While smaller versions like GPT-3.5 or GPT-4-turbo exist, the focus is on generality rather than reasoning-specific distillation.
    • Smaller models are optimized for speed and cost rather than task-specific performance.

4. Language and Format Handling

  • DeepSeek-R1:
    • Faces challenges with language mixing, where reasoning processes mix languages in multilingual tasks.
    • Focuses on making reasoning processes readable and structured through designed output formats (e.g., <reasoning_process> and <summary>).
  • ChatGPT:
    • Handles multilingual inputs effectively but without specific guarantees about structured reasoning outputs.
    • Emphasizes conversational fluency and alignment with user expectations rather than reasoning structure.

5. Application and Benchmark Performance

  • DeepSeek-R1:
    • Excels in benchmarks like AIME 2024MATH-500Codeforces, and reasoning-specific tasks.
    • Designed to handle tasks that require long-context understanding and complex problem solving, like coding competitions and advanced math problems.
  • ChatGPT:
    • Performs well across a broad range of tasks, including reasoning, general knowledge, creative writing, and conversational AI, but lacks specialization for rigorous benchmarks like AIME or MATH-500.

6. Focus on Research and Open Source

  • DeepSeek-R1:
    • Targets the research community, with open-sourcing of models like DeepSeek-R1-Zero and distilled versions.
    • Encourages experimentation with RL and model distillation for reasoning tasks.
  • ChatGPT:
    • Primarily a commercial product aimed at providing general-purpose conversational AI to businesses and consumers.
    • Focuses less on open-source contributions and more on proprietary advancements.

How DeepSeek is Impacting World?

The global impact of DeepSeek is multifaceted and significant:

  • Market Disruption:
    • Shifted the AI Landscape: DeepSeek's cost-effective strategy for developing high-performing large language models (LLMs) has challenged the AI industry’s norms, showing that significant advancements can be achieved with lower investments instead of massive capital expenditure. 
    • Impact on Tech Stocks: The emergence of DeepSeek triggered a global selloff in tech stocks, particularly those associated with AI hardware and infrastructure (like Nvidia). This highlights the market's sensitivity to competitive pressures and the potential for rapid shifts in the AI landscape.  
      • Nvidia Shares After DeepSeek- After the launch of DeepSeek R1, NVIDIA's shares decisively dropped to $118.58, marking a significant decline of approximately 15% in just five days.
  • Technological Advancements:
    • Open-Source Innovation: DeepSeek’s open-source models promote collaboration and innovation in the AI community, accelerating development and democratizing access to advanced technology.
    • Pushing the Boundaries of AI: DeepSeek's achievements have demonstrated the potential for significant advancements in AI capabilities, particularly in areas like reasoning and problem-solving. This pushes the boundaries of what is possible with AI and inspires further research and development.  
  • Geopolitical Implications:
    • Shifting the AI Power Balance: DeepSeek's success has challenged the perceived dominance of US tech giants in the AI field. It highlights the growing influence of China in AI research and development, potentially altering the global AI landscape.  
    • Increased Competition: The emergence of strong AI players from different regions increases competition and fosters innovation across the globe. This can lead to faster advancements and more diverse approaches to AI development.  
  • Ethical and Societal Considerations:
    • Accessibility and Equity: The cost-effectiveness of DeepSeek's models has the potential to increase accessibility to advanced AI technologies, potentially democratizing AI and enabling broader societal impact.  
    • New Challenges: The rapid advancement of AI, driven by companies like DeepSeek, raises new ethical and societal challenges that require careful consideration and proactive solutions. These include issues like bias, misinformation, job displacement, and the responsible use of AI.   

Comparison Between DeepSeek and Other AI Models

Benchmark (Metric)

Claude-3.5 (Sonnet-1022)

GPT-4o (0513)

DeepSeek-V3

OpenAI (o1-mini)

OpenAI (o1-1217)

DeepSeek-R1

Architecture - - MoE - - MoE
# Activated Params - - 37B - - 37B
# Total Params - - 671B - - 671B
English            
MMLU (Pass@1) 88.3 87.2 88.5 85.2 91.8 90.8
MMLU-Redux (EM) 88.9 88.0 89.1 86.7 - 92.9
MMLU-Pro (EM) 78.0 72.6 75.9 80.3 - 84.0
DROP (3-shot F1) 88.3 83.7 91.6 83.9 90.2 92.2
IF-Eval (Prompt Strict) 86.5 84.3 86.1 84.8 - 83.3
GPQA Diamond (Pass@1) 65.0 49.9 59.1 60.0 75.7 71.5
SimpleQA (Correct) 28.4 38.2 24.9 7.0 47.0 30.1
FRAMES (Acc.) 72.5 80.5 73.3 76.9 - 82.5
AlpacaEval2.0 (LC-winrate) 52.0 51.1 70.0 57.8 - 87.6
ArenaHard (GPT-4-1106) 85.2 80.4 85.5 92.0 - 92.3
Code            
LiveCodeBench (Pass@1-COT) 38.9 32.9 36.2 53.8 63.4 65.9
Codeforces (Percentile) 20.3 23.6 58.7 93.4 96.6 96.3
Codeforces (Rating) 717 759 1134 1820 2061 2029
SWE Verified (Resolved) 50.8 38.8 42.0 41.6 48.9 49.2
Aider-Polyglot (Acc.) 45.3 16.0 49.6 32.9 61.7 53.3
Math            
AIME 2024 (Pass@1) 16.0 9.3 39.2 63.6 79.2 79.8
MATH-500 (Pass@1) 78.3 74.6 90.2 90.0 96.4 97.3
CNMO 2024 (Pass@1) 13.1 10.8 43.2 67.6 - 78.8
Chinese            
CLUEWSC (EM) 85.4 87.9 90.9 89.9 - 92.8
C-Eval (EM) 76.7 76.0 86.5 68.9 - 91.8
C-SimpleQA (Correct) 55.4 58.7 68.0 40.3 - 63.7

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Frequently Asked Questions (FAQs)

1. Is DeepSeek a Chinese Company?

2. What chips does DeepSeek use?

3. What is DeepSeek and what does it do?

4. What happens with DeepSeek?

5. Is it safe to use DeepSeek?

6. How old is DeepSeek?

7. Is DeepSeek free?

8. What is special with DeepSeek?

9. Will DeepSeek hurt Nvidia?

10. What is R1 DeepSeek?

Mukesh Kumar

Mukesh Kumar

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