[0:00] A tiny Chinese startup just humiliated [0:02] OpenAI. They built a model that matches [0:04] GPT4's performance. But here is the [0:06] crazy part. They did it for onetenth of [0:09] the training cost and they are giving it [0:10] away for free. Is the era of paid AI [0:13] over? Today we put Deepseek V3 to the [0:17] test to see if free finally means [0:18] better. Before we dive into the tests, [0:20] [music] it's crucial to understand what [0:22] makes Deepseek so different. In a world [0:25] flooded with AI models that are [0:27] essentially variations on a theme, [0:29] DeepSeek [music] broke the mold. This [0:31] isn't just another copycat trying to [0:33] chase GPT4's [music] [0:34] tail. They fundamentally rethought the [0:37] architecture from the ground up, leading [0:39] to a breakthrough in [music] efficiency [0:40] and power. The secret source, it's a [0:44] concept that's been around for a while, [0:45] but has only recently been perfected. [0:47] They're using a sophisticated [0:49] architecture called a mixture [music] of [0:50] experts ore. [0:53] To understand why this is a gamecher, [0:55] imagine a traditional model like GPT4 as [0:58] one giant monolithic brain. It's [1:01] incredibly powerful, but it's also [1:02] incredibly [music] expensive. Every time [1:04] you ask it a question, no matter how [1:06] simple, [music] the entire massive brain [1:09] has to power up and process it. [1:11] Deepseek, on the other hand, is like a [1:13] team of 64 highly specialized experts. [1:16] When you ask a coding question, [music] [1:18] a smart routting network instantly [1:20] identifies the two best experts for the [1:22] job, say the Python Pro and the [music] [1:24] Algorithm Ace, and only wakes them up. [1:27] The other 62 experts remain dormant, [1:29] [music] saving an immense amount of [1:31] computational power. This makes it not [1:33] just faster, but radically [music] [1:35] cheaper to train and run. We're talking [1:37] about achieving top tier performance [1:39] while using only a fraction of the [1:41] computational resources. [1:42] >> [music] [1:43] >> This efficiency is what should be [1:44] terrifying for big tech. Think about it. [1:47] If [music] Deep Seek can offer this [1:49] level of intelligence for mere pennies [1:51] on the dollar through an API, [music] [1:52] why would anyone continue to pay a [1:54] premium? Open AAI's entire $20 [1:58] subscription model, which subsidizes [1:59] [music] the immense cost of their giant [2:01] brain, is suddenly on very shaky ground. [2:05] This isn't just a new competitor. It's a [2:07] potential extinction level event for the [2:09] old way of doing AI. Talk is [music] [2:11] cheap. Let's put these models to the [2:13] test with a realworld coding challenge. [2:16] On one [music] side, we have the [2:17] reigning champion GPT40. On the other, [2:20] the Challenger [music] Deep Seek Coder [2:22] V2. This isn't just any model. It's an [2:25] open-source [music] mixture of experts [2:27] model trained on a colossal two trillion [2:29] tokens of code and natural language. It [2:32] boasts [music] top scores on benchmarks [2:34] like human eval [2:37] claiming to rival proprietary models at [2:39] [music] a fraction of the cost. But [2:41] benchmarks are one thing. Practical [2:43] application is another. So [music] I [2:45] asked both to write a Python script for [2:47] a classic snake game using the Pi game [2:49] library. To make it interesting, I added [2:52] a twist. The snake must speed up every [2:54] [music] time it eats an apple. This [2:56] tests not just basic code generation, [2:58] but [music] also state management and [3:00] logical implementation. [3:02] Right away, Deepseek's performance was [3:04] [music] impressive. It generated the [3:06] complete functional code about 20% [3:08] faster than [music] GPT40. [3:11] For developers, that speed translates [3:13] directly [music] to productivity, [3:15] enabling faster iteration and problem [3:17] solving. But speed is meaningless if the [3:19] code is broken. So the real question is, [3:22] [music] does it actually work? And the [3:24] answer is a resounding yes. Deepseek's [3:27] [music] code ran perfectly on the very [3:29] first try. Zero errors, zero debugging. [3:33] GPT40, however, stumbled. It missed a [3:36] crucial [music] variable definition, [3:37] throwing a syntax error that broke the [3:39] program. I had to go back and prompt it [3:42] a [music] second time to get a working [3:43] fix. This initial test highlights a key [3:46] difference reliability. [3:48] While both models eventually produce the [3:50] correct [music] code, Deepseek delivered [3:52] a flawless solution faster and on the [3:55] first attempt. [music] For any developer [3:57] on a deadline, that's a gamecher in this [4:00] round. [music] [4:01] Deepseek isn't just a contender. It's [4:03] looking like the new heavyweight [4:04] champion of coding. Now for the second [4:06] test, reasoning and logic. This is where [4:09] many models, especially earlier [4:11] open-source ones, fall flat. They can [4:13] perform complex calculations, but often [4:16] miss the simple realworld context [4:18] [music] that humans grasp instantly. [4:20] This is a crucial hurdle for AI to [4:22] overcome if it's going to be genuinely [4:24] useful. So, I set a classic logic trap [4:27] to see if Deep [music] Seek could think, [4:29] not just calculate. I asked, "If I dry [4:33] five shirts in the sun and it takes 4 [4:35] [music] hours, how long does it take to [4:36] dry 10 shirts?" The trap is obvious. A [4:40] purely mathematical brain might double [4:42] the time to 8 hours. It's a simple [4:44] question, but it's a fantastic test for [4:46] [music] contextual understanding. [4:48] Deep Seek answers 4 hours. It [4:51] immediately understands that drying is [4:53] [music] a simultaneous event. The shirts [4:55] all dry together, so adding more shirts [4:57] doesn't extend the time, assuming you [4:59] have enough space. [music] This ability [5:01] to handle nuance and implicit [5:03] assumptions is incredibly impressive. [5:05] It's a sign of sophisticated training on [5:07] diverse, highquality data. This isn't [5:10] just a one-off trick. [music] This [5:12] reasoning power extends across the [5:14] board. In my tests, it excelled at [5:16] debugging code, planning multi-step [5:18] projects, and even breaking down complex [5:20] scientific concepts. [music] [5:22] It feels far less robotic than other [5:24] open-source models. It's not just [5:26] regurgitating [music] [5:27] data. It's connecting dots and [5:29] demonstrating genuine problem-solving [5:31] [music] skills. In fact, in five out of [5:34] the seven logic and reasoning tests I [5:35] ran, it either matched or outright beat [5:38] the current [music] industry leader, GPT [5:40] 40. That is a monumental achievement for [5:43] a model that's completely open- source. [5:46] And remember [music] the best part, you [5:47] aren't paying a single cent for this [5:49] level of intelligence. Why does this [5:51] matter if you aren't a [music] [5:52] developer? Because of competition. For [5:55] the last 2 years, we accepted that smart [5:57] AI costs $20 [music] a month. Deep Seek [6:01] just proved that intelligence is [6:02] becoming a commodity like electricity. [6:04] It's getting cheaper every day. This [6:07] forces Open AAI and Google to either [6:09] lower their prices or release something [6:11] significantly better. Either way, we [6:14] win. One caveat. This is a Chinese [6:17] model. If you are working on top secret [6:19] [music] government data, maybe stick to [6:21] local models. But for learning, coding, [6:24] and general tasks, [music] it's a [6:25] no-brainer. If you want to run AI [6:28] completely privately on your own [6:29] computer, check out this tutorial next. [6:32] The revolution is open source.