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Company Description
This Stage used 3 Reward Models
DeepSeek (Chinese: 深度求索; pinyin: Shēndù Qiúsuǒ) is a Chinese synthetic intelligence business that develops open-source big language models (LLMs). Based in Hangzhou, Zhejiang, it is owned and funded by Chinese hedge fund High-Flyer, whose co-founder, Liang Wenfeng, established the business in 2023 and acts as its CEO.
The DeepSeek-R1 model offers responses comparable to other contemporary big language designs, such as OpenAI’s GPT-4o and o1. [1] It is trained at a substantially lower cost-stated at US$ 6 million compared to $100 million for OpenAI’s GPT-4 in 2023 [2] -and requires a tenth of the computing power of a comparable LLM. [2] [3] [4] DeepSeek’s AI designs were developed amid United States sanctions on India and China for Nvidia chips, [5] which were planned to limit the capability of these two nations to establish sophisticated AI systems. [6] [7]
On 10 January 2025, DeepSeek launched its very first free chatbot app, based on the DeepSeek-R1 model, for iOS and Android; by 27 January, DeepSeek-R1 had surpassed ChatGPT as the most-downloaded totally free app on the iOS App Store in the United States, [8] triggering Nvidia’s share price to visit 18%. [9] [10] DeepSeek’s success versus bigger and more established competitors has actually been referred to as “overthrowing AI”, [8] making up “the first chance at what is becoming a global AI area race”, [11] and ushering in “a brand-new period of AI brinkmanship”. [12]
DeepSeek makes its generative expert system algorithms, models, and training information open-source, permitting its code to be freely readily available for usage, modification, viewing, and developing documents for constructing purposes. [13] The business reportedly vigorously hires young AI researchers from leading Chinese universities, [8] and hires from outside the computer system science field to diversify its models’ knowledge and abilities. [3]
In February 2016, High-Flyer was co-founded by AI lover Liang Wenfeng, who had been trading given that the 2007-2008 monetary crisis while participating in Zhejiang University. [14] By 2019, he established High-Flyer as a hedge fund focused on establishing and utilizing AI trading algorithms. By 2021, High-Flyer solely utilized AI in trading. [15] DeepSeek has actually made its generative artificial intelligence chatbot open source, suggesting its code is easily readily available for use, adjustment, and viewing. This consists of permission to gain access to and use the source code, in addition to design files, for constructing purposes. [13]
According to 36Kr, Liang had developed up a store of 10,000 Nvidia A100 GPUs, which are utilized to train AI [16], before the United States federal government enforced AI chip limitations on China. [15]
In April 2023, High-Flyer started a synthetic basic intelligence laboratory dedicated to research establishing AI tools separate from High-Flyer’s financial organization. [17] [18] In May 2023, with High-Flyer as one of the investors, the laboratory became its own business, DeepSeek. [15] [19] [18] Equity capital firms were reluctant in supplying funding as it was unlikely that it would have the ability to produce an exit in a brief time period. [15]
After launching DeepSeek-V2 in May 2024, which used strong efficiency for a low price, DeepSeek became called the driver for China’s AI design cost war. It was quickly dubbed the “Pinduoduo of AI”, and other major tech giants such as ByteDance, Tencent, Baidu, and Alibaba started to cut the cost of their AI designs to take on the business. Despite the low rate charged by DeepSeek, it was successful compared to its competitors that were losing cash. [20]
DeepSeek is concentrated on research and has no comprehensive strategies for commercialization; [20] this likewise allows its technology to avoid the most stringent provisions of China’s AI policies, such as requiring consumer-facing innovation to abide by the government’s controls on info. [3]
DeepSeek’s working with preferences target technical abilities rather than work experience, leading to the majority of brand-new hires being either current university graduates or developers whose AI professions are less developed. [18] [3] Likewise, the business hires people with no computer science background to help its technology comprehend other subjects and locations, consisting of having the ability to create poetry and carry out well on the infamously hard Chinese college admissions exams (Gaokao). [3]
Development and release history

DeepSeek LLM
On 2 November 2023, DeepSeek released its first series of model, DeepSeek-Coder, which is offered for complimentary to both scientists and commercial users. The code for the model was made open-source under the MIT license, with an additional license contract (“DeepSeek license”) regarding “open and responsible downstream usage” for the model itself. [21]
They are of the same architecture as DeepSeek LLM detailed below. The series consists of 8 models, 4 pretrained (Base) and 4 instruction-finetuned (Instruct). They all have 16K context lengths. The training was as follows: [22] [23] [24]
1. Pretraining: 1.8 T tokens (87% source code, 10% code-related English (GitHub markdown and Stack Exchange), and 3% code-unrelated Chinese).
2. Long-context pretraining: 200B tokens. This extends the context length from 4K to 16K. This produced the Base designs.
3. Supervised finetuning (SFT): 2B tokens of instruction data. This produced the Instruct models.
They were trained on clusters of A100 and H800 Nvidia GPUs, linked by InfiniBand, NVLink, NVSwitch. [22]
On 29 November 2023, DeepSeek released the DeepSeek-LLM series of models, with 7B and 67B criteria in both Base and Chat types (no Instruct was launched). It was developed to complete with other LLMs readily available at the time. The paper claimed benchmark outcomes greater than the majority of open source LLMs at the time, particularly Llama 2. [26]: section 5 Like DeepSeek Coder, the code for the design was under MIT license, with DeepSeek license for the design itself. [27]
The architecture was essentially the like those of the Llama series. They used the pre-norm decoder-only Transformer with RMSNorm as the normalization, SwiGLU in the feedforward layers, rotary positional embedding (RoPE), and grouped-query attention (GQA). Both had vocabulary size 102,400 (byte-level BPE) and context length of 4096. They trained on 2 trillion tokens of English and Chinese text obtained by deduplicating the Common Crawl. [26]
The Chat versions of the two Base models was also released simultaneously, gotten by training Base by supervised finetuning (SFT) followed by direct policy optimization (DPO). [26]
On 9 January 2024, they launched 2 DeepSeek-MoE designs (Base, Chat), each of 16B parameters (2.7 B triggered per token, 4K context length). The training was essentially the like DeepSeek-LLM 7B, and was trained on a part of its training dataset. They declared comparable efficiency with a 16B MoE as a 7B non-MoE. In architecture, it is a variant of the standard sparsely-gated MoE, with “shared professionals” that are always queried, and “routed professionals” that may not be. They found this to assist with expert balancing. In standard MoE, some specialists can end up being extremely depended on, while other specialists might be rarely utilized, squandering criteria. Attempting to balance the professionals so that they are similarly used then triggers professionals to replicate the same capability. They proposed the shared specialists to learn core capabilities that are typically used, and let the routed experts to discover the peripheral capabilities that are hardly ever utilized. [28]
In April 2024, they launched 3 DeepSeek-Math models specialized for doing math: Base, Instruct, RL. It was trained as follows: [29]
1. Initialize with a previously pretrained DeepSeek-Coder-Base-v1.5 7B.
2. Further pretrain with 500B tokens (6% DeepSeekMath Corpus, 4% AlgebraicStack, 10% arXiv, 20% GitHub code, 10% Common Crawl). This produced the Base model.
3. Train an instruction-following design by SFT Base with 776K math issues and their tool-use-integrated step-by-step services. This produced the Instruct model.
Reinforcement knowing (RL): The reward model was a procedure benefit model (PRM) trained from Base according to the Math-Shepherd approach. [30] This benefit design was then utilized to train Instruct utilizing group relative policy optimization (GRPO) on a dataset of 144K math concerns “related to GSM8K and MATH”. The reward design was continuously upgraded throughout training to avoid benefit hacking. This resulted in the RL design.
V2
In May 2024, they launched the DeepSeek-V2 series. The series includes 4 models, 2 base models (DeepSeek-V2, DeepSeek-V2-Lite) and 2 chatbots (-Chat). The 2 larger designs were trained as follows: [31]
1. Pretrain on a dataset of 8.1 T tokens, where Chinese tokens are 12% more than English ones.
2. Extend context length from 4K to 128K using YaRN. [32] This resulted in DeepSeek-V2.
3. SFT with 1.2 M instances for helpfulness and 0.3 M for security. This led to DeepSeek-V2-Chat (SFT) which was not launched.
4. RL utilizing GRPO in two stages. The very first phase was trained to fix mathematics and coding issues. This stage used 1 reward model, trained on compiler feedback (for coding) and ground-truth labels (for math). The second stage was trained to be helpful, safe, and follow guidelines. This stage utilized 3 benefit models. The helpfulness and safety reward models were trained on human preference data. The rule-based reward design was manually set. All qualified reward designs were initialized from DeepSeek-V2-Chat (SFT). This resulted in the released version of DeepSeek-V2-Chat.
They went with 2-staged RL, because they discovered that RL on thinking data had “distinct characteristics” various from RL on basic information. For example, RL on reasoning might enhance over more training actions. [31]
The two V2-Lite models were smaller sized, and experienced likewise, though DeepSeek-V2-Lite-Chat just went through SFT, not RL. They trained the Lite variation to help “additional research and development on MLA and DeepSeekMoE”. [31]
Architecturally, the V2 designs were significantly modified from the DeepSeek LLM series. They altered the standard attention system by a low-rank approximation called multi-head latent attention (MLA), and utilized the mix of specialists (MoE) variant previously published in January. [28]
The Financial Times reported that it was cheaper than its peers with a rate of 2 RMB for each million output tokens. The University of Waterloo Tiger Lab’s leaderboard ranked DeepSeek-V2 seventh on its LLM ranking. [19]
In June 2024, they launched 4 designs in the DeepSeek-Coder-V2 series: V2-Base, V2-Lite-Base, V2-Instruct, V2-Lite-Instruct. They were trained as follows: [35] [note 2]
1. The Base models were initialized from corresponding intermediate checkpoints after pretraining on 4.2 T tokens (not the variation at the end of pretraining), then pretrained further for 6T tokens, then context-extended to 128K context length. This produced the Base designs.
DeepSeek-Coder and DeepSeek-Math were used to generate 20K code-related and 30K math-related guideline information, then combined with a guideline dataset of 300M tokens. This was utilized for SFT.
2. RL with GRPO. The benefit for mathematics issues was computed by comparing to the ground-truth label. The benefit for code problems was produced by a benefit model trained to forecast whether a program would pass the unit tests.
DeepSeek-V2.5 was launched in September and updated in December 2024. It was made by combining DeepSeek-V2-Chat and DeepSeek-Coder-V2-Instruct. [36]
V3
In December 2024, they launched a base design DeepSeek-V3-Base and a chat design DeepSeek-V3. The design architecture is essentially the like V2. They were trained as follows: [37]
1. Pretraining on 14.8 T tokens of a multilingual corpus, primarily English and Chinese. It contained a higher ratio of math and shows than the pretraining dataset of V2.
2. Extend context length two times, from 4K to 32K and then to 128K, utilizing YaRN. [32] This produced DeepSeek-V3-Base.
3. SFT for 2 epochs on 1.5 M samples of reasoning (math, programming, logic) and non-reasoning (creative writing, roleplay, basic question answering) data. Reasoning data was generated by “skilled designs”. Non-reasoning information was generated by DeepSeek-V2.5 and inspected by people. – The “skilled designs” were trained by beginning with an undefined base design, then SFT on both data, and synthetic information created by an internal DeepSeek-R1 model. The system prompt asked the R1 to show and validate during thinking. Then the expert designs were RL utilizing an undefined benefit function.
– Each expert design was trained to create just artificial thinking data in one specific domain (math, shows, logic).
– Expert models were utilized, instead of R1 itself, considering that the output from R1 itself suffered “overthinking, poor format, and excessive length”.
4. Model-based reward designs were made by beginning with a SFT checkpoint of V3, then finetuning on human choice information containing both last benefit and chain-of-thought resulting in the final reward. The benefit model produced reward signals for both questions with objective but free-form answers, and concerns without unbiased responses (such as imaginative writing).
5. A SFT checkpoint of V3 was trained by GRPO utilizing both reward models and rule-based benefit. The rule-based reward was calculated for mathematics problems with a final answer (put in a box), and for programming issues by unit tests. This produced DeepSeek-V3.
The DeepSeek team carried out substantial low-level engineering to accomplish efficiency. They used mixed-precision math. Much of the forward pass was carried out in 8-bit floating point numbers (5E2M: 5-bit exponent and 2-bit mantissa) rather than the standard 32-bit, requiring unique GEMM routines to collect precisely. They used a custom 12-bit float (E5M6) for just the inputs to the direct layers after the attention modules. Optimizer states were in 16-bit (BF16). They decreased the communication latency by overlapping thoroughly computation and communication, such as devoting 20 streaming multiprocessors out of 132 per H800 for only inter-GPU communication. They lowered communication by rearranging (every 10 minutes) the specific machine each specialist was on in order to prevent particular makers being queried more frequently than the others, adding auxiliary load-balancing losses to the training loss function, and other load-balancing strategies. [37]
After training, it was released on H800 clusters. The H800 cards within a cluster are connected by NVLink, and the clusters are connected by InfiniBand. [37]
Benchmark tests reveal that DeepSeek-V3 outperformed Llama 3.1 and Qwen 2.5 whilst matching GPT-4o and Claude 3.5 Sonnet. [18] [39] [40] [41]
R1
On 20 November 2024, DeepSeek-R1-Lite-Preview became available through DeepSeek’s API, in addition to through a chat interface after logging in. [42] [43] [note 3] It was trained for sensible inference, mathematical reasoning, and real-time problem-solving. DeepSeek claimed that it surpassed efficiency of OpenAI o1 on criteria such as American Invitational Mathematics Examination (AIME) and MATH. [44] However, The Wall Street Journal mentioned when it utilized 15 problems from the 2024 edition of AIME, the o1 design reached a solution quicker than DeepSeek-R1-Lite-Preview. [45]
On 20 January 2025, DeepSeek released DeepSeek-R1 and DeepSeek-R1-Zero. [46] Both were initialized from DeepSeek-V3-Base, and share its architecture. The business also launched some “DeepSeek-R1-Distill” designs, which are not initialized on V3-Base, but rather are initialized from other pretrained open-weight models, including LLaMA and Qwen, then fine-tuned on artificial information created by R1. [47]
A conversation in between User and Assistant. The user asks a concern, and the Assistant solves it. The assistant initially thinks of the thinking process in the mind and after that offers the user with the response. The reasoning procedure and answer are enclosed within and tags, respectively, i.e., reasoning procedure here address here. User:. Assistant:
DeepSeek-R1-Zero was trained solely utilizing GRPO RL without SFT. Unlike previous versions, they utilized no model-based reward. All reward functions were rule-based, “mainly” of 2 types (other types were not specified): accuracy benefits and format rewards. Accuracy benefit was checking whether a boxed answer is proper (for mathematics) or whether a code passes tests (for programming). Format reward was examining whether the design puts its thinking trace within … [47]
As R1-Zero has issues with readability and blending languages, R1 was trained to address these concerns and further improve reasoning: [47]
1. SFT DeepSeek-V3-Base on “thousands” of “cold-start” data all with the basic format of|special_token|| special_token|summary >.
2. Apply the very same RL process as R1-Zero, but also with a “language consistency benefit” to motivate it to respond monolingually. This produced an internal model not launched.
3. Synthesize 600K reasoning data from the internal design, with rejection tasting (i.e. if the produced thinking had an incorrect final answer, then it is gotten rid of). Synthesize 200K non-reasoning data (writing, accurate QA, self-cognition, translation) using DeepSeek-V3.
4. SFT DeepSeek-V3-Base on the 800K synthetic information for 2 epochs.
5. GRPO RL with rule-based benefit (for reasoning jobs) and model-based benefit (for non-reasoning tasks, helpfulness, and harmlessness). This produced DeepSeek-R1.
Distilled models were trained by SFT on 800K data manufactured from DeepSeek-R1, in a comparable method as action 3 above. They were not trained with RL. [47]
Assessment and responses

DeepSeek launched its AI Assistant, which utilizes the V3 model as a chatbot app for Apple IOS and Android. By 27 January 2025 the app had actually exceeded ChatGPT as the highest-rated free app on the iOS App Store in the United States; its chatbot apparently responds to questions, resolves reasoning problems and writes computer system programs on par with other chatbots on the market, according to benchmark tests used by American AI companies. [3]
DeepSeek-V3 utilizes considerably less resources compared to its peers; for example, whereas the world’s leading AI business train their chatbots with supercomputers using as lots of as 16,000 graphics processing units (GPUs), if not more, DeepSeek declares to require just about 2,000 GPUs, specifically the H800 series chip from Nvidia. [37] It was trained in around 55 days at an expense of US$ 5.58 million, [37] which is roughly one tenth of what United States tech huge Meta spent constructing its newest AI innovation. [3]
DeepSeek’s competitive efficiency at reasonably minimal cost has actually been recognized as potentially challenging the worldwide supremacy of American AI models. [48] Various publications and news media, such as The Hill and The Guardian, explained the release of its chatbot as a “Sputnik moment” for American AI. [49] [50] The performance of its R1 model was reportedly “on par with” among OpenAI’s latest models when used for tasks such as mathematics, coding, and natural language reasoning; [51] echoing other analysts, American Silicon Valley venture capitalist Marc Andreessen also explained R1 as “AI’s Sputnik minute”. [51]
DeepSeek’s founder, Liang Wenfeng has actually been compared to Open AI CEO Sam Altman, with CNN calling him the Sam Altman of China and an evangelist for AI. [52] Chinese state media extensively applauded DeepSeek as a national asset. [53] [54] On 20 January 2025, China’s Premier Li Qiang welcomed Liang Wenfeng to his seminar with experts and asked him to offer viewpoints and recommendations on a draft for comments of the annual 2024 government work report. [55]
DeepSeek’s optimization of limited resources has highlighted potential limitations of United States sanctions on China’s AI advancement, which include export constraints on innovative AI chips to China [18] [56] The success of the business’s AI models as a result “stimulated market turmoil” [57] and triggered shares in major international innovation companies to plunge on 27 January 2025: Nvidia’s stock fell by as much as 17-18%, [58] as did the stock of competing Broadcom. Other tech firms likewise sank, including Microsoft (down 2.5%), Google’s owner Alphabet (down over 4%), and Dutch chip equipment maker ASML (down over 7%). [51] An international selloff of technology stocks on Nasdaq, triggered by the release of the R1 design, had led to tape losses of about $593 billion in the market capitalizations of AI and computer system hardware business; [59] by 28 January 2025, a total of $1 trillion of value was wiped off American stocks. [50]
Leading figures in the American AI sector had blended reactions to DeepSeek’s success and efficiency. [60] Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman-whose companies are involved in the United States government-backed “Stargate Project” to develop American AI infrastructure-both called DeepSeek “very impressive”. [61] [62] American President Donald Trump, who announced The Stargate Project, called DeepSeek a wake-up call [63] and a favorable development. [64] [50] [51] [65] Other leaders in the field, consisting of Scale AI CEO Alexandr Wang, Anthropic cofounder and CEO Dario Amodei, and Elon Musk expressed skepticism of the app’s efficiency or of the sustainability of its success. [60] [66] [67] Various business, including Amazon Web Services, Toyota, and Stripe, are seeking to utilize the model in their program. [68]
On 27 January 2025, DeepSeek restricted its new user registration to phone numbers from mainland China, email addresses, or Google account logins, following a “large-scale” cyberattack interrupted the proper functioning of its servers. [69] [70]
Some sources have observed that the main application programs interface (API) version of R1, which ranges from servers found in China, utilizes censorship mechanisms for topics that are considered politically sensitive for the government of China. For example, the design declines to address concerns about the 1989 Tiananmen Square demonstrations and massacre, persecution of Uyghurs, contrasts in between Xi Jinping and Winnie the Pooh, or human rights in China. [71] [72] [73] The AI may initially produce an answer, but then erases it shortly later on and replaces it with a message such as: “Sorry, that’s beyond my existing scope. Let’s talk about something else.” [72] The integrated censorship systems and constraints can only be gotten rid of to a limited extent in the open-source version of the R1 model. If the “core socialist values” specified by the Chinese Internet regulatory authorities are discussed, or the political status of Taiwan is raised, conversations are terminated. [74] When evaluated by NBC News, DeepSeek’s R1 explained Taiwan as “an inalienable part of China’s area,” and stated: “We strongly oppose any kind of ‘Taiwan self-reliance’ separatist activities and are committed to achieving the total reunification of the motherland through tranquil methods.” [75] In January 2025, Western scientists had the ability to trick DeepSeek into providing certain responses to a few of these subjects by requesting in its answer to switch specific letters for similar-looking numbers. [73]
Security and privacy

Some experts fear that the federal government of China could use the AI system for foreign impact operations, spreading disinformation, surveillance and the development of cyberweapons. [76] [77] [78] DeepSeek’s personal privacy conditions state “We store the details we gather in secure servers located in individuals’s Republic of China … We may collect your text or audio input, prompt, uploaded files, feedback, chat history, or other material that you provide to our model and Services”. Although the data storage and collection policy follows ChatGPT’s personal privacy policy, [79] a Wired article reports this as security issues. [80] In reaction, the Italian data protection authority is looking for extra information on DeepSeek’s collection and usage of personal data, and the United States National Security Council revealed that it had actually begun a national security review. [81] [82] Taiwan’s government banned making use of DeepSeek at federal government ministries on security premises and South Korea’s Personal Information Protection Commission opened a query into DeepSeek’s use of personal information. [83]
Artificial intelligence market in China.
Notes
^ a b c The variety of heads does not equivalent the variety of KV heads, due to GQA.
^ Inexplicably, the design called DeepSeek-Coder-V2 Chat in the paper was launched as DeepSeek-Coder-V2-Instruct in HuggingFace.
^ At that time, the R1-Lite-Preview needed selecting “Deep Think made it possible for”, and every user could utilize it just 50 times a day.
References
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