5 Things to Know About Chinese AI Startup DeepSeek

On Monday, the US Department of Homeland Security ordered government agencies to stop using DeepSeek tools, citing concerns that data could be transferred to China. Founded in Hangzhou in 2023 by Liang Wenfeng, the startup drew global attention with its R1 reasoning model, released in January 2025 and touted for strong performance at a fraction of the cost of leading rivals. Its tools face concerns over censorship and data privacy, while their low cost and open-source design have helped make them popular, particularly in developing countries. DeepSeek has about 4 percent of the global chatbot market, compared with ChatGPT’s 68 percent, and its success has galvanized China’s AI sector.