【For PC Beginners Too】Why the “DeepSeek Shock” from China is Shaking the AI World

In 2024, a shockwave hit the world of AI. It’s called the “DeepSeek Shock.”

The Chinese-made AI model DeepSeek stunned the world by outperforming ChatGPT in performance while being produced at a fraction of the cost. It even became the free app in both the U.S. and China.

This historic moment is now being called the “AI version of the Sputnik Shock.”

In this article, we’ll explain why DeepSeek is such a big deal and why it’s gaining so much attention — in a simple and easy-to-understand way, especially for high school students and people who aren’t good with computers.

Getting Started with ChatGPT and AI Chatbots　An introduction to generative AI tools　（BCS, The Chartered Institute for IT）

Mark Pesce | 2023年12月06日発売

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Getting Started with ChatGPT and AI Chatbots An introduction to generative AI tools【電子書籍】[ Mark Pesce ] 価格：2,577円 (2025/6/9時点)

What Is DeepSeek?

So, what exactly is DeepSeek?

• A new AI model developed by a Chinese AI company

• Released as a free app, gaining more popularity than ChatGPT

• Main feature: High performance at a very low cost

Why Is the World So Shocked?

• DeepSeek’s performance is almost on par with ChatGPT’s GPT-4o

• But it was developed at less than 1/10 of the cost

  (GPT-4o cost $1.1 billion, DeepSeek V3 cost around $60 million)

How Did They Make It So Cheap?

1. Efficient Use of Older Hardware

• Instead of using expensive modern chips, they used older hardware cleverly

• With only 1/5 the number of components OpenAI used, they achieved similar performance

2. Used AI Distillation Technology

• DeepSeek trained a smaller model using an existing large AI model as a “teacher”

• This made training faster, cheaper, and still powerful

3. Open-Source Release

• DeepSeek shared its code openly, allowing anyone to use and develop it

• This sped up innovation and broadened adoption

The “Sputnik Shock” of AI?

What Was the Sputnik Shock?

• In 1957, the Soviet Union launched a satellite before the U.S.

• It made the U.S. panic and kick-started massive investment in tech and space

How Is This Like That?

• DeepSeek has triggered a similar reaction in the U.S.

• It marked the beginning of a global race for AI supremacy

The Genius Behind DeepSeek: Liang Wenfeng

Who Is Liang Wenfeng?

• A math genius from China

• Made a fortune in finance and used his money to start DeepSeek

The Secret Story Behind DeepSeek

• Secretly gathered high-performance hardware on his own

• Developed the AI in less than a year, entirely self-funded

America’s Counterattack: The Stargate Project

What Is the Stargate Project?

• A massive AI development effort by OpenAI, Microsoft, and SoftBank

• Investing a jaw-dropping ¥78 trillion (~$500 billion) over four years

But… Is That Money Worth It?

• DeepSeek proved that you don’t need a huge budget to make powerful AI

• This questions the very meaning of big investments

Q&A Section: Frequently Asked Questions

Q1: Is DeepSeek really better than ChatGPT?

A: As of now, it performs similarly — but it’s free. That’s what makes it highly praised.

Q2: How did they keep the cost so low?

A: By using older parts efficiently and applying AI distillation technology.

Q3: Can I use DeepSeek in Japan?

A: As of June 2025, yes. It supports Japanese and is available for use.

Conclusion: How DeepSeek Is Changing the Future

• We’re entering an age where high-performance AI can be built cheaply

• This lowers the barriers to AI development around the world

• The U.S. and China now represent two very different AI development strategies

• A battle between high-cost vs. high-efficiency models is beginning

• With companies like SoftBank and OpenAI involved, Japan’s future in AI may also transform

DeepSeek is a turning point in the future of AI.

By understanding this shift, you’ll be able to see where the world is heading next.

Don’t miss out on the AI wave that’s reshaping the world — get informed and stay ahead!