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ARTICLE · 05 FEBRUARY 2025

What Is DeepSeek, And Why Does It Matter?

Baker Botts L.L.P.
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Baker Botts L.L.P.

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Everyone seems to be talking about DeepSeek, and its latest AI technologies. But what is DeepSeek? What has it produced?

United StatesTechnology

Everyone seems to be talking about DeepSeek, and its latest AI technologies. But what is DeepSeek? What has it produced? And why is everyone talking about them? This client update is intended to provide some of the basic facts around DeepSeek and identify a few new issues and opportunities that may be relevant to corporate cybersecurity and AI adoption efforts.

Who is DeepSeek?

DeepSeek is an arm of a Chinese hedge fund known as "High-Flyer."1 One of the co-founders of High-Flyer, Liang Wenfeng, founded DeepSeek to make generally applicable generative AI models. Its first model was released on November 2, 2023.2 But the models that gained them notoriety in the United States are two most recent releases, V3, a general large language model ("LLM"), and R1, a "reasoning" model. According to DeepSeek's benchmark scores, these new models provide strong performance across the board – including approaching or exceeding US frontier models in many key areas. For example,

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