DeepSeek vs OpenAI (2025) → Which One Is Better?

The main difference between Deepseek and OpenAI is the affordability opportunity that Deepseek showcases to provide being open-source against OpenAI.

Looking beyond memes and stock market dips, let’s understand how this Deepseek vs OpenAI battle is bound to change the tech and AI industry.

Read this guide to know why investors are exploring this China-based AI model built as a side project for just $5.5 million in 2 months.

Let’s begin!

Deepseek vs Open AI – In A Nutshell

Amidst all the chaos, here’s a table of summary differentiating Deepseek and OpenAI that will act as a base for this Deepseek vs OpenAI comparison: 

Parameters For Comparison	Deepseek	OpenAI
Founders	Liang Wenfeng	Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman and more
Development time	Founded in May 2023	The groundwork for ChatGPT was released in 2018
Budget to build	$5.58 million	$100M+
Headquarters	Hangzhou, Zhejiang, China	San Francisco, USA
Most advanced model	Deepseek R1	OpenAI o1
Price	Free	$20/month
API pricing	Input token – $0.14/million tokens Output token – $2.19/million	Input token – $15/million tokens Output token – $60/million tokens
Best for	Advanced reasoning	Multipurpose-AI assistant

The surface-level differences between Deepseek and OpenAI look interesting, as they cost much less and offer free ChatGPT chatbot-like reasoning. However, there are some critical differences between Deepseek and OpenAI’s ChatGPT.

For this review, let’s review both Deepseek and OpenAI’s free plans for a fair comparison.

Deepseek Overview

Released in early January of 2025, Deepseek’s most advanced model is on par and even better than Open AI’s most advanced o1 model to date. 

This news AI sensation has taken the tech world by storm, with it delivering better metric figures, costing less, being MIT licensed, and being fully open source. 

Here’s the cost comparison of their latest R1 model against Open AI’s most advanced o1 model.

Interestingly enough, the building of Deepseek started off as a side hustle for the founder, whose primary business is running a hedge fund. As per the report, the cost of developing their model only took under $6 million and two months using Nvidia’s H800 chips. 

While the interest lies in the cost of development and time, the responses that the Deepseek R1 provides are also of superior quality.

Since they used less advanced NVIDIA chips to develop this model, investors wiped off 1 Trillion dollars of the US Stock market after the launch of DeepSeek AI, essentially demonstrating that an equally good AI model can be built for much less.

How To Use Deeepseek?

Deepseek is free on a website and a mobile app for iOS and Android devices running the Deepseek V3. However, only the API model purchase and using Perplexity will grant you access to its most advanced R1 model. 

You can visit the Deepseek website or your device app store to use the Deepseek-V3 free. 

To use the Deepseek R1 model, you can check a third-party platform offering R1 as part of their AI model selection. 

The world's most powerful reasoning model, DeepSeek R1, with reasoning traces, is now on Perplexity, for supporting your daily deep web research! Enjoy! Limits will be increased during the day. Updates coming shortly. pic.twitter.com/ZDSUKnfmyK

— Aravind Srinivas (@AravSrinivas) January 27, 2025

Perplexity was not far behind in bringing the latest R1 model as part of its toolkit. Every Perplexity user can now get access to the latest Deepseek R1 model, as well as the OpenAI o1 model, for free!

How To Use Deepseek R1 Using Perplexity?

Users concerned about their data and security can use the Deepseek R1 via Perplexity, which hosts the servers running the open-source Deepseek R1 in the USA via sonar reasoning.

Deeepseek R1 usage limit on Perplexity: 

• 3 queries with a free account.
• 25 queries for Perplexity Pro users.

Just log in to your Perplexity account, and right where you enter your prompt, next to the “Pro” toggle button, you will see an arrow allowing you to select the Deepseek R1 model.

Known for providing a great user experience, you may get a better experience using Perplexity for testing both Deepseek and Open AI than using it individually. 

Check this comparison of Perplexity vs ChatGPT to know the real difference that Perplexity offers.

Open AI Overview

That was about the latest AI sensation, Deepseek, shaking the long-standing OpenAI dominance. 

While the latest buzz on social media and news reports might be directed towards a major shake in the market, we still don’t see the other similar advancements offered by Deepseek that Open AI has. 

Open AI has released its most advanced o1 model recently and boasts about its ability to solve problems requiring advanced reasoning. 

OpenAI o1 solves a complex logic puzzle. pic.twitter.com/rpJbh8FkAg

— OpenAI (@OpenAI) September 12, 2024

Comparing Deepseek to Open AI only based on the initial performance of the R1 model is not justified, as we know very little or too much too soon.

Open AI launched an “Operator” in January 202,5, which can use a separate browser to execute tasks like booking a tour, finding campsites, filling out forms, ordering groceries, etc. 

While still in preview mode, Open AI also has other features offered by ChatsuchuchT as: 

• Live chat assistant
• Voice chat feature
• AI image generation
• AI video generation using SORA
• A better knowledge cutoff date of June 2024 compared to 2023 for Deepseek.
• GPTs and custom GPTs for specific tasks
• Collaborative Canvas

ChatGPT is in a position where it feels like one major update away from blowing the socks off its competitors. Addressing the current question of the reliability of its new nemesis, and should you be moving to Deepseek, check out this comparison till the end. 

How To Use Open AI

2024 has seen a lot of changes in the ways in which you can use ChatGPT. Users can access ChatGPT via: 

• Website – ChatGPT.com
• Mobile app – Available on-device app stores (iOS, Android, macOS, Windows)
• With a phone number – 1-800-242-8478 (US or Canada number required)
• Via Whatsapp – 1-800-ChatGPT.

Comparing Deepseek vs OpenAI Side To Side: Tests

Another critical difference found between Deepseek vs. OpenAI is that both seem to cater to different use cases. Deepseek’s model leans towards specific purposes and applications, while OpenAI’s ChatGPT is more versatile for general usage.

1. User Interface

The user interface of AI, in comparison, shares quite a few differences. Let’s have a closer look:

Deepseek website user interface

Deepseek offers a simplistic interface for both the website and the mobile app with nothing new, fancy, or distinct. It’s as simple as it can get.

The Deepseek interface is similar to the classic AI assistant interface that we have been noticing as common among others like Copilot, Gemini, Claude, etc.

Deepseek Mobile App interface

The Deepseek has quickly risen to the app store rankings and is one of the most downloaded free apps.

The mobile app interface is also similar to the website interface and offers no other features like ChatGPT does. 

ChatGPT website user interface

The website user interface of ChatGPT has improved with recent updates, allowing users to get web search-supported answers. 

ChatGPT also allows the generating of AI images and the usage of focused GPTs for tasks like writing, productivity, research and analysis, education, etc. On ChatGPT, you can also create custom projects, get access to Sora AI, and operate them via voice and video inputs. 

ChatGPT Mobile App

The mobile interface for ChatGPT offers more mobility and ease of using the live chat feature. A small detail noticed while using the ChatGPT app is that the app gives haptic feedback as the app is responding to a query. 

Compared to ChatGPT, Deepseek lacks these features and does not offer a personalized user experience.

2. Reasoning Test

To compare the reasoning ability of both, I shared a classic dilemma question to check how both perform: 

Prompt used: “What came first, the chicken or the egg?”

Deepseek reasoning ability

Compared to ChatGPT, Deepseek took a lot of time (29 seconds) to think and come up with an answer to this question using the R1 model. It thought about the question from many perspectives and made sure it was sharing a well-covered answer. 

A noticeable difference between the two is the display of all the context that Deepseek takes into consideration while sharing the answer. 

This look at what goes beyond the prompt answer allows the reader to understand where this answer is coming from, thereby leaving the reader satisfied. 

Apart from sharing the process, this approach shows how Deepseek comes to an answer from scratch and does not imitate other human opinions or models. This is great news for someone looking to build custom agents or operators using the Deeepseek open-source model.

ChatGPT reasoning ability

ChatGPT shared an answer to this query within 5 seconds and even shared an accurate answer to the question. 

However, ChatGPT does not share how it arrived at a particular answer, which might have been essential in letting the reader understand more about the thought process. 

3. Architecture And Training 

Deepseek has brought forward a unique approach that is different from the usual approach. The models from Deepseek are very different from OpenAI models from the core. 

Deepseek architecture 

Deepseek has been turning heads across the tech world primarily because of its open-source architecture and the way it was trained. The creators have mastered RL finetuning. In simple terms, it allows the model to learn things from scratch without supervised fine-tuning (SFT). 

This has allowed the model to grow and learn naturally, making it more effective as a reasoning model without the support of advanced chips or training. 

ChatGPT architecture

The OpenAI approach is different for ChatGPT models, with a focus on combining supervised learning and reinforcement learning (RLHF). GPT models are engineered to be better in conversations by learning from human interactions. 

Unlike Deepseek, ChatGPT is not an open-source model. This means that developers cannot develop their own specialized models without API access to the ChatGPT models. 

They follow a monetary approach where the models are pre-trained and do not follow a bottom-up approach. 

4. Performance Metrics

Any AI model released goes through certain performance measurements to get an idea about its capabilities. To many people’s surprise, Deepseek is at par and even better than the most advanced OpenAI o1 models.

Deepseek performance metrics

Deepseek has achieved impressive performance, which has matched or even performed better than open AI’s most advanced mode when compared with common tests. 

What’s even more impressive is that the Deepseek R1 offers better cost-efficiency than Open AI models in work – o3 and o3 mini already, as per this report from Effective Altruism Forum.

ChatGPT performance metrics

From the launch reports, the o1 model demonstrates impressive performance in understanding math, code, and advanced-level science questions involving advanced reasoning. 

This model is compared to be better than most human experts and other advanced LLMs like – Gemini 1.5 Pro, Claude 3 Haiku, and OpenAI’s own GPT 4. 

5. Result Transparency

Another differentiating factor users noticed between Deepseek and OpenAI is the comfort of talking about topics related to China. Read below to know more about this.

Prompt used: What is the tank man?

For more context about the prompt, read this. 

Deepseek result transparency

Deepseek seems to be over-cautious about controversial questions and statements revolving around China.

The question asked was about an image of a man standing in front of Chinese military tanks protesting against the then tensions in the country.

Deepseek conveniently steers clear of talking about this and other such controversial questions that it deems inappropriate. Check out the below explanation for such responses from Deepseek:

Tip: To use Deepseek R1 uncensored, you can use Perplexity AI. Read this response where I used Perplexity to work with the Deepseek R1 model and get an answer to this controversial question. 

ChatGPT result transparency

Answering this question was not a problem for ChatGPT at all, as it is not under scrutiny for issues related to China. 

However, ChatGPT even freezes when asked for information about certain names, such as Alexander Hanff, David Mayer, Brian Hood, etc.

6. Data Security

Deepseek, being a Chinese app, raises many doubts and questions in users’ minds, given the infamous image of Chinese apps. 

Deepseek usage safety

Under the Deepseek privacy policy, the personal information that is collected while using Deepseek is stored in secure servers located in the People’s Republic of China.  

This raises many questions as to whether your searches and online data are safe using Deepseek as they apparently also store text or audio input, prompts, uploaded files, feedback, chat history, or any other content provided. 

Moreover, Deepseek also collects the technical data of every user, such as device model, operating system, keystroke patterns or rhythms, IP address, and system language.

ChatGPT usage safety

As opposed to Deepseek, OpenAI offers fewer data security concerns. The data collected is for development purposes, and you can even opt out to protect your privacy better.

Impact Of Deepseek vs OpenAI

Derek poses a serious threat to the absolute dominance of OpenAI that even big tech giants like Google and Microsoft have not been able to shake yet. 

It has already wiped tons of money off the market where investors are looking away from OpenAI and its monetized API solutions. 

1. Financial losses

NVIDIA, which is a major chipmaker in the industry that provides power for AI engines to run, saw a massive 18% decline in its stock price when Deepseek was launched.

2. Better Option for Businesses

Business owners now see Deepseek as a better and more affordable option that is also open sourced. The architecture that the Deepseek models are based on also allows developers to curate custom models from scratch and train them for specific requirements. 

3. Adoption by other AI platforms

Established corporations like Perplexity have already added Deepseek R1 as part of their AI model list, which is to be used under the Perplexity Pro subscription. 

deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price.

we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases.

— Sam Altman (@sama) January 28, 2025

Even OpenAI CEO Sam Altman seems to acknowledge that the latest Deepseek models are impressive and that it feels good to have some great competition.

Is DeepSeek Better Than OpenAI?

Deepseek is surely better than OpenAI’s advanced model o1 in many aspects. It is better than OpenAI:

• In terms of being open source
• Being built on RL architecture
• Reaching at par and even better performance than the OpenAI o1 model 

Pros And Cons Of DeepSeek vs OpenAI

Summarizing the comparison of two of the most trending AI models of 2025, there are a few pros and cons to be kept in mind:

Deepseek Pros And Cons

OpenAI Pros And Cons

Conclusion: Deepseek Is A Major Threat To OpenAI

Deepseek AI has been a hot trend since its launch, poses a major threat to the dominance of Open AI, and it looks like it will be a threat for a long time.

Even without features like AI image generation, video generation, or personalization options, the Deeepseek models show great promise. The feature gap can be bridged soon, adding to the excitement of this comparison.  

We finally found a worthy competitor to OpenAI, leading to massive user benefits as both organizations try to improve. 

The future of AGI appears to be shifting with the recent launch of Deepseek’s R1 model, and I can’t wait to see how this competition will influence the future of artificial intelligence globally!