Why Did DeepSeek Have A Ripple Effect On The Entire World?

In late 2023, the tech world was disrupted by the launch of a path-breaking AI model that quickly reshaped the industry. Developed by Chinese entrepreneur Liang Feng, the first model, "DeepSeek Coder," was released in November 2023, demonstrating impressive coding capabilities. However, it was the January 2025 release of "DeepSeek-R1" that truly turned heads, positioning itself as a formidable challenger to OpenAI’s "o1" model.

What sets DeepSeek apart is its remarkable cost efficiency—developed for just $6 million, a fraction of the multi-billion-dollar budgets typically spent by tech giants. This rapid ascent is transforming investment strategies globally.

Shifting the Pattern – AI Investment Strategies for Businesses

Traditionally, AI adoption was seen as an expensive, resource-heavy endeavor, reserved for large corporations. However, DeepSeek’s introduction has challenged that view. With its efficient design and reasonable cost, it has demonstrated that powerful AI models can be developed with fewer resources.

This shift is crucial for SMEs, enabling them to access advanced technologies without hefty upfront investments. Companies are now focusing on smarter, sustainable approaches that quickly generate value. DeepSeek allows businesses to experiment with tools that improve operations, enhance customer service, and streamline decision-making—ultimately boosting their bottom line with measurable results.

India’s Takeaway – A Blueprint for AI Success

With its rapidly growing tech ecosystem, the country has a lot to learn from this model’s development. The government’s ambitious ‘IndiaAI Mission’ stands at the perfect intersection to harness the power of such advancements. Launched with a ₹10,300 crore investment, this mission aims to build a robust infrastructure that not only accelerates the adoption of technologies but also nurtures indigenous innovation.

In line with this vision, the IndiaAI mission has already launched high-performance GPU infrastructure, with over 18,693 GPUs online as of 2024. Special models like ‘BharatGen,’ which enhances public service delivery, and ‘Sarvam-1,’ optimizing resources across the country, are positioning India as an AI powerhouse.

IndiaAI Mission – What Can We Expect?

IndiaAI mission is set to be a game-changer. In the coming years, we can expect to see more initiatives aimed at building AI that is both, global in scope, and local in impact. The goal is to create an infrastructure that empowers innovators across the country, regardless of their location. With our tech talent and startup ecosystem booming, the focus will be on integrating technology with key sectors like agriculture, healthcare, education, and urban development.

One of the most exciting prospects is the role AI will play in enhancing digital literacy and improving public services. The IndiaAI Dataset Platform is being developed to provide data access that will fuel research and create models tailored to the needs of different regions. Moreover, the rapid advancements in infrastructure like the deployment of GPU clusters across the country, are giving us a strong foundation to build the next generation of AI models.

By focusing on AI-skilling initiatives and establishing an environment that encourages entrepreneurship, India is not only preparing to become a global leader in AI but also ensuring that this leadership is inclusive, sustainable, and beneficial to its entire population.

The Future of DeepSeek and Beyond – A New Era of AI Models

DeepSeek is just the beginning. Technology is evolving at an unprecedented pace, and models like these will only get more efficient. With the rise of personalized models, businesses and governments will have the ability to create personalized solutions.

As AI continues to mature, models that integrate multiple types of learning—like reinforcement learning, neural networks, and quantum computing—will likely emerge. The impact of these developments will be felt across every sector, from manufacturing and finance to creative industries and healthcare.

For India, the future is particularly thrilling, with a clear path to becoming a global AI leader. As the country continues to build on its tech mission, the development of localized models, the expansion of AI infrastructure, and a focus on AI literacy will provide India with a competitive edge on the world stage. Companies will not only create solutions that address local challenges but also craft technologies that are flexible to other emerging markets globally.

Conclusion

India is leading in AI adoption, with 80% of companies identifying it as a core strategic priority, surpassing the global average of 75%, according to a BCG report. More than two-thirds of Indian companies plan to increase tech investments in 2025, with a third allocating over USD 25 million to AI initiatives. DeepSeek, with its innovative features and competitive advantages, is set to play a pivotal role in further accelerating this growth, transforming industries, and shaping the future of technology. The journey with DeepSeek is just beginning, and the potential for growth is limitless.

By Anil Sinha, Chief Technology Officer, Fibe