DeepSeek R1 (uncensored) - The pros and cons of the new AI everyone's talking about
All about the open source AI project that is even shaking up the stock market
![All about the open source AI project that is even shaking up the stock market](/src/assets/images/blog/deepseek-vs-nvidia-and-openai-stocks.png)
DeepSeek R1 represents a significant step towards the democratization of AI technology. As an open-source AI model, it theoretically enables anyone, whether developer, researcher, or tech enthusiast, to run the system on their own hardware (i.e., their home PC) - a decisive advantage over proprietary solutions like OpenAI’s ChatGPT. DeepSeek R1 is a groundbreaking open-source AI model from China that’s causing quite a stir in the world of Artificial Intelligence (AI). Developed by the Chinese startup DeepSeek, the model offers impressive performance at a fraction of the cost of leading Western AI systems like OpenAI’s ChatGPT. But what makes DeepSeek R1 so special, why has it thrown stock markets worldwide into turmoil, and what advantages does it offer?
What is DeepSeek R1?
DeepSeek R1 is a so-called “reasoning” model (similar to OpenAI’s o3-mini), specifically designed to “think” logically, draw conclusions, and solve complex problems. The model also shows its thinking steps, allowing users to transparently see how the AI arrived at its solution. OpenAI’s o3-mini doesn’t show its steps as transparently as Deepseek R1, which has led to some discussions in the tech world about the traceability of decisions and the user-friendliness of ChatGPT models. With 671 billion parameters, it’s one of the most powerful open-source language models in the world. It combines advanced machine learning algorithms with an innovative “Mixture-of-Experts” architecture. This structure enables more precise and efficient responses than conventional models. A crucial advantage of DeepSeek R1 is its open-source approach: The source code is publicly accessible, allowing developers and researchers to analyze, adapt, and run the model locally on their own devices. This promotes innovation and privacy and makes the technology accessible to a broad audience. Privacy, in particular, is a crucial point, as companies don’t have to entrust their most important data to a Big Tech company.
Why Did DeepSeek R1 Shake Up the Stock Markets?
“After DeepSeek made international headlines and even grandmothers couldn’t escape the news, Nvidia’s stock plunged 18%. Score one for China!”
The release of DeepSeek R1 in January 2025 led to significant turbulence in global financial markets. US technology companies like Nvidia, Microsoft, and Meta were particularly affected, with their stock prices taking a severe hit. Nvidia recorded an 18% loss - the biggest single-day loss in Wall Street history - equivalent to $600 billion in market value vanishing into thin air. The reason for these reactions lies in DeepSeek R1’s efficiency. The model requires less powerful hardware than its Western competitors (OpenAI, Gemini, and Anthropic) while delivering comparable results. This questions the current dependence on high-end chips like those from Nvidia and raises doubts about American companies’ massive investments in AI infrastructure. Investors fear that AI leadership might be shifting to China.
A Battle Between USA and China
The global AI race has evolved into a direct duel between the USA and China. While US companies like OpenAI, Anthropic, and Google push forward with billion-dollar investments in AGI (Artificial General Intelligence) development, China counters with companies like DeepSeek and substantial state resources. In this technological arms race, Europe positions itself as a mere spectator. The EU focuses primarily on regulation, while its own AI industry struggles under the weight of bureaucratic requirements and lack of support. While the superpowers wrestle for AI supremacy, Europe risks being left in the dust.
“While the superpowers and Big Tech companies duke it out, the EU is busy cooking up another regulatory project.”
What Makes DeepSeek R1 So Special and Good?
DeepSeek R1 offers numerous advantages:
- Open Source: The open source code allows anyone to download and run the model locally for free. This significantly reduces privacy risks since sensitive data doesn’t need to be transferred to external servers.
- Cost Efficiency: Development costs were only $5.6 million - a fraction of what Western companies like OpenAI invest. Operating costs are also significantly lower. However, this remains a myth, as experts believe the company received additional millions in subsidies.
- Performance: In tests, DeepSeek R1 performed nearly equal to or even better than ChatGPT. It particularly excels in mathematics, programming, and scientific analysis.
- Transparency: Unlike many other models, DeepSeek R1 shows its thinking processes (“Chain-of-Thought”), increasing the traceability of its answers.
Weaknesses of DeepSeek R1: Censorship - but not with CamoCopy
While DeepSeek R1 impresses with its technical capabilities, it has weaknesses regarding censorship and handling politically sensitive topics related to China. These limitations stem from regulatory requirements in China, where the model was developed:
- Censorship of Sensitive Topics: DeepSeek R1 systematically avoids answering questions about critical events like the Tiananmen Square massacre, Taiwan’s independence, or Hong Kong protests. Such questions are often either ignored or met with evasive answers.
- Built-in Filter Mechanisms: The model contains mechanisms that block certain keywords and prioritize pro-Chinese narratives. This significantly restricts information diversity.
- Unreliability with Controversial Questions: Even when DeepSeek R1 initially provides answers, they may later be withdrawn or replaced with innocuous statements.
Our Solution: We’ve recognized these weaknesses and are making a modified version of DeepSeek R1 available to the public that’s completely uncensored. Through CamoCopy, we provide the model without any restrictions. Users can freely ask questions about critical topics like Tiananmen, Hong Kong, or Xinjiang and receive transparent, fact-based answers - without filters or censorship. With CamoCopy, we offer a privacy-friendly AI experience that’s not just powerful but also uncompromising, ethical, and open.
Privacy and Accessibility: A Transformation Factor
Another significant advantage of DeepSeek R1 is its local usability. Users can install and run the model on their own computer, provided the hardware is powerful enough. For less powerful devices, “distilled” versions are available that still deliver good results. This approach significantly minimizes privacy risks. Since no data needs to be sent to external servers, users maintain full control over their often sensitive conversations and information shared with AI assistants. This makes DeepSeek R1 particularly attractive for data-sensitive applications in companies or research institutions looking to benefit from AI capabilities.
How to Install Deepseek R1 on Your Home PC
DeepSeek R1 is a powerful AI model that can run locally on your computer. To use it, you first need a solid hardware foundation: A modern processor, at least 16 GB RAM, and sufficient storage space are recommended, especially if you want to use the model (DeepSeek R1: 7B). Note that this model is 10 times smaller than the model (70B) running on CamoCopy and consequently provides less optimal answers. For installation, tools like Ollama or LM Studio can be used, which enable easy setup. Llama.cpp is an alternative for advanced users. If you only have limited hardware resources, you can also use an even smaller model (e.g., DeepSeek R1: 1.5B) that requires less computing power - though with limitations in model capacity and strength. If you want to run DeepSeek R1 in the cloud and thus use the larger model, this article from European hosting provider GCore might also be suitable, as it gives you the ability to access the AI from any computer. However, this comes with significant costs and is less suitable for private users.
Why Did American AI Companies Crash Because of This?
The release of DeepSeek R1 has not only raised questions about the capabilities of modern AI systems but also cast doubt on the high valuations of many US technology companies. Nvidia and others have invested heavily in high-performance chips that were previously considered indispensable. However, if models like DeepSeek R1 can deliver similar performance with less powerful hardware, these investments might lose their significance see article from Finanzen.ch. Moreover, DeepSeek R1’s success demonstrates China’s growing strength in artificial intelligence. In the long term, this could challenge Silicon Valley’s dominance and usher in a new era of global competition.
Conclusion: A Revolution in the AI World
DeepSeek R1 represents a turning point in artificial intelligence development. Its open-source nature and associated advantages in terms of privacy, cost efficiency, and performance make it a serious alternative to established models like ChatGPT, which likes to feed users’ data and chats into their own AI to make their AI slightly better than the competition every day. At the same time, Deepseek faces the challenge that it’s difficult to install the AI on a home PC and remove censorship, as many consumer hardware setups aren’t powerful enough yet. However, if you want to try an uncensored and privacy-friendly AI solution without having to install everything yourself with great effort and being able to access it from anywhere (including your smartphone), we recommend our CamoCopy platform. Here you can easily try all leading open-source AIs like DeepSeek R1 - without restrictions on critical topics like China and without fear that your data will be used to develop better AIs! Be among the first to experience the uncensored DeepSeek R1 model (for free)! Get the CamoCopy app and enter the code “censorfree” in the settings under “Use a promo code” to get started immediately!