My view on DeepSeek: How this side project became a game-changer

Can the DeepSeek AI model outperform ChatGPT and revolutionize AI-powered trading? Trading expert Eric Chia explores how DeepSeek is reshaping financial markets and AI technology.

When I first heard about the DeepSeek AI model, my immediate reaction was, Great, another AI model trying to make waves in an already crowded space. I mean, we’ve got ChatGPT, Perplexity, Claude, and a dozen other AI tools eyeing for attention. But then, something interesting happened. DeepSeek actually turned out to be good. Like, really good. This got me thinking: How did a Chinese company, under scrutiny for advanced chip restrictions, still manage to build something that sent shockwaves through the market?

Key takeaways

1. Can DeepSeek AI challenge industry giants? Learn how this emerging AI model is making its mark in a field dominated by ChatGPT and other major players.
2. How does DeepSeek’s reasoning stand out? Unlike traditional AI models, DeepSeek goes beyond basic responses to understand user intent at a deeper level.
3. Could DeepSeek reshape financial markets? Its ability to analyze real-time data and offer strategic insights could impact trading and investment strategies.
4. What makes DeepSeek different from ChatGPT? A closer look at its advantages in contextual retention, accuracy, and adaptability for users.
5. Is DeepSeek the future of AI innovation? The rise of this AI model may signal broader shifts in global AI development and China’s influence in the tech space.

DeepSeek's impact on the AI industry

The magnitude of this achievement is undeniable—it’s not just another AI model, but a product that has directly influenced market sentiment, particularly in the US. The sheer impact has even been felt by Nvidia (NVDA), a key player in the AI race.

What’s even more intriguing is how the DeepSeek AI model, which seemingly started as a niche project, evolved into something capable of genuinely shifting the AI landscape. It raises bigger questions about China’s AI strategy, its ability to innovate despite supply chain constraints, and whether this signals a broader shift in the balance of power within the AI industry.

The cost factor and market disruption

And then there’s the cost factor. If the DeepSeek AI model truly delivers high performance at a lower cost—something the market has yet to fully verify—it could mark a significant disruption, forcing Western AI firms to rethink their pricing and accessibility strategies.

DeepSeek wasn’t supposed to be a revolution. It started as an experimental project, aiming to push the boundaries of open-source AI models. But what set it apart was its laser focus on efficiency, scalability, and user-friendly adaptability. Unlike some of its competitors that prioritize broad, generic responses, DeepSeek zeroed in on being sharp, to the point, slightly less robotic and REASONING in advance what the user really wants to ask or to achieve user objectives/expectations.

DeepSeek vs. ChatGPT: Performance comparison

I tested DeepSeek vs. ChatGPT by applying the same prompt to both AI tools to generate an answer:

“You're a trader focusing on Gold instruments. You will need to analyze both technical and fundamental analysis and tell me what is the best strategy.”

Contextual retention and accuracy

My results showed that DeepSeek demonstrates a significant advantage in contextual retention, meaning it excels in maintaining continuity throughout a conversation. It accurately remembers prior details, ensuring responses remain consistent and aligned with the user’s past inputs. This reduces the likelihood of contradictory statements or needing to remind the AI tool of earlier discussions repeatedly.

Moreover, the DeepSeek AI model exhibits a lower tendency to hallucinate information, making it a more reliable choice for users who require precise and fact-based responses. While some AI models may inject unrelated or fabricated details, DeepSeek remains focused, delivering answers that are not only relevant but also closer to what the user actually wants.

This strong contextual awareness allows DeepSeek to grasp user intent more effectively, adapting to preferences and refining its responses accordingly. As a result, users experience a more intuitive and personalized interaction, where the AI understands them better and provides insights that align with their expectations.

How DeepSeek helps traders and impacts financial markets

The impact of the DeepSeek AI model on the financial markets extends beyond AI innovation. Its ability to retain context, process large data sets, and provide deeper market insights makes it a valuable tool for traders.

For example, DeepSeek’s enhanced contextual retention allows it to track ongoing market trends and react to financial news in a more informed manner. Unlike traditional AI models that generate static responses, DeepSeek can analyze multiple factors—including economic reports, interest rate changes, and geopolitical events—to produce more accurate trading strategies.

Moreover, its lower tendency to hallucinate means traders can rely on it for factual, data-driven insights rather than speculative or misleading information. Whether used for risk assessment, portfolio optimization, or technical analysis, DeepSeek’s ability to reason through complex financial scenarios can help traders make more informed investment decisions with greater confidence.

Final thoughts

One of the biggest challenges in AI today is balancing speed, accuracy, and creativity. DeepSeek manages to strike that perfect balance without feeling like it's trying too hard. It’s like that friend who’s effortlessly cool—not the one constantly reminding you how cool they are but the one who naturally delivers value without unnecessary fluff.

DeepSeek isn’t perfect—no AI model is. But it’s exciting to see how a relatively new AI project has managed to carve out a space in a field dominated by giants. While it may not outright replace ChatGPT, it presents a compelling alternative, particularly for users who prioritize efficiency, contextual retention, and logical reasoning. Its rise isn’t just about AI innovation—it’s about the growing influence of Chinese tech in global AI development.