Lessons from DeepSeek

Every so often, an underdog company doesn’t just improve the status quo – it completely overturns it overnight. Big global giants in panic mode. Stock market in the reds. Even the US President is reacting to it. That’s what DeepSeek, a Chinese AI startup, has done to the AI industry. With a revolutionary approach, they’ve managed to compete with industry giants like OpenAI, Anthropic, Meta, and Google at a fraction of the cost.

Every so often, an underdog company doesn’t just improve the status quo – it completely overturns it overnight. Big global giants in panic mode. Stock market in the reds. Even the US President is reacting to it. That’s what DeepSeek, a Chinese AI startup, has done to the AI industry. With a revolutionary approach, they’ve managed to compete with industry giants like OpenAI, Anthropic, Meta, and Google at a fraction of the cost.

This isn’t just a tech story; it’s a business story. DeepSeek offers valuable lessons for leaders on how to challenge norms, innovate boldly, and redefine markets. Quietly, and then came the storm that changed the global landscape.

The Storm Came Months Ago

Working in marketing, advertising, and communications, I’ve always look for ways to enhance creativity and efficiency. Platforms like Runway for video generation and Midjourney for visuals initially seemed like the pinnacle of innovation, allowing me to create near-professional-grade content without a full production team.

Then came Chinese AI innovators like Kling and Minimax out of nowhere. For those of us in the creative industry, we knew the storm arrived months ago. These tools didn’t just match their US counterparts – they surpassed them, offering superior quality and accessibility. They roll out updates super fast, and the output gets better for each update. It was a paradigm shift, reflecting the same disruptive spirit that defines DeepSeek’s story.

The takeaway? Disruption is about rethinking what’s possible and daring to do things differently, whether in AI, marketing, or any industry (I bet you are thinking about BYD, GWM, Haval, Chery etc dominating the global auto market now). And doing it fast, at lower cost, without sacrificing quality.

So, what can business owners and CEOs learn?

1. Challenge Conventional Wisdom

In AI, the accepted wisdom was simple – better models require massive infrastructure and exorbitant budgets. DeepSeek shattered this belief by asking, “What if we could build smarter instead of bigger?”

Their innovative “expert system” activated only the necessary parts of their model for specific tasks, reducing costs and increasing efficiency. This approach opened doors previously thought unreachable.

Lesson:

Question long-standing assumptions. Are there processes in your business that exist simply because "that’s how it’s always been done"? Rethink them to find leaner, smarter solutions.

2. Efficiency – The Key to Accessibility

DeepSeek’s model didn’t just cut costs – it democratised AI. By reducing GPU usage by over 90% and slashing API costs, they made advanced AI accessible to start-ups and individuals like me. For example, small e-commerce businesses can now leverage AI-powered customer analytics, while independent developers integrate cutting-edge AI into apps without breaking the bank.

Lesson:

Streamline your processes to serve wider audiences. Efficiency isn’t just about saving money; it’s a growth strategy. It unlocks new opportunities and markets for you, allowing industries to grow faster.

3. Open-Source – Turning Transparency into Strength

DeepSeek made their AI open source, a bold move in an industry that thrives on secrecy. By releasing their code and research to the public, they signalled a commitment to transparency that resonated deeply with the tech community. This openness not only built trust but also fostered collaboration among developers, researchers, and businesses worldwide. It allowed others to build upon their work, accelerating innovation and positioning DeepSeek as a leader driving the industry forward.

This strategy exemplifies how transparency can be a powerful tool for growth and influence, enabling a company to shape the broader ecosystem while enhancing its credibility.

Lesson:

Transparency amplifies influence. Share your knowledge to build trust and encourage innovation through collaboration.

4. Be the Disruptor, Not the Disrupted

While major AI players focused on optimising their systems, DeepSeek introduced fresh ideas that forced others to adapt. They challenged the established norms by rethinking the very foundation of AI development, proving that innovation doesn’t have to come from incremental improvements but from bold leaps. By prioritising smarter solutions over more complex ones, they created a ripple effect across the industry.

This approach not only disrupted the competition but also reshaped expectations, leaving competitors scrambling to match their ingenuity and efficiency.

Lesson:

Don’t wait for competitors to push you into action. Identify inefficiencies and unmet needs in your industry and take bold steps to address them. Stay ahead by leading the change.

5. Small Teams, Big Wins

With less than 10 employees according to CNN, DeepSeek, a small lab achieved what industry giants couldn’t. Their agility and focus proved that small, aligned teams can drive extraordinary results by concentrating resources on high-impact priorities. By maintaining clear goals and fostering a culture of innovation, DeepSeek demonstrated how small teams can outperform their larger competitors by being nimble, creative, and laser-focused on their objectives.

This lesson extends beyond AI. Patagonia, for example, has outperformed larger apparel companies by focusing on its mission and empowering its teams to execute purposefully.

Lesson:

Success isn’t about size; it’s about alignment, resourcefulness, empowerment, and determination. Build a culture that prioritises innovation and execution.

6. Take Risks and Act Boldly

DeepSeek’s willingness to rethink AI’s foundations and take calculated risks was key to their frontpage news now. They embraced uncertainty, challenging existing frameworks with innovative approaches that made their solutions not only more efficient but also more accessible. Revolutionary changes don’t come without boldness, and DeepSeek’s approach shows that risk-taking is often the catalyst for transformative success.

Lesson:

Bold moves define leaders and their businesses. Whether targeting unconventional markets or launching ambitious products, calculated risks are often necessary to stay ahead.

The Mindset of Disruption

DeepSeek’s story is a masterclass in challenging norms, embracing efficiency, and prioritising transparency. They’ve proven that boldness and innovation can redefine industries and turn the world upside-down.

Here are the key takeaways:

• Challenge assumptions: Don’t settle for "the way it’s always been done."

• Focus on efficiency: Unlock opportunities through smarter resource use.

• Be transparent: Collaboration builds trust and accelerates growth.

• Act boldly: Take calculated risks to lead, not follow.

So, what bold move will you make next?

---

If you enjoyed this article, consider subscribing to our D!sruptive newsletter. Come back for more disruptive thoughts and tips in our next edition.

If you need the help discussed in this article, get in touch to see how we can work with your business 🇦🇺 1300 776 968, 🇺🇸 +1 512 518 4196 or hello@byDisrupt.com