How to Invest in DeepSeek: A Guide to the Promising AI Startup
DeepSeek, a Chinese AI startup, has quickly gained attention for its innovative approach to AI model training. This article dives into DeepSeek, its potential impact on the AI industry, and how investors can gain exposure to the AI sector even without direct access to DeepSeek stock.
DeepSeek: The Disruptor in AI?
Founded in July 2023 by Liang Wenfeng, DeepSeek introduced an open-source large language model (LLM) in early 2025 that leverages "interference-time computing." This technique activates only the most relevant parts of the model for each query.
Key advantages of DeepSeek's approach:
- Reduced Costs: Requires fewer specialized chips, significantly lowering training expenses.
- Efficient Computing: Optimized query processing for faster results.
- Potential Market Disruption: Ability to create AI models at a fraction of the cost compared to industry giants like OpenAI and Google.
DeepSeek's latest AI model reportedly cost only $6 million to develop, a stark contrast to the billions that leading U.S. AI companies are planning to invest in AI infrastructure. If DeepSeek’s cost-effective approach proves successful, it could revolutionize the AI landscape.
Can You Buy DeepSeek Stock?
As of early 2025, DeepSeek is not publicly traded. It's privately held and wholly owned by High-Flyer, the Chinese hedge fund founded by Liang Wenfeng. This means you cannot buy DeepSeek stock on the open market through a typical brokerage account.
Is a DeepSeek IPO on the Horizon?
Currently, there is no scheduled IPO for DeepSeek. Given its early stage and lack of commercialized products, an initial public offering is unlikely in the near future.
How Can You Invest in DeepSeek Alternatives?
While direct investment in DeepSeek isn't possible, investors can still capitalize on the growth of the AI industry by considering these DeepSeek alternatives:
- Nvidia (NVDA): A leading designer of advanced semiconductors essential for AI model training and applications. DeepSeek reportedly used Nvidia's H800 chips to train its latest model. Investing in Nvidia provides exposure to the fundamental infrastructure driving AI advancements.
- Microsoft (MSFT): An early investor in OpenAI and a pioneer in integrating AI across its products and services. Microsoft is making huge bets on the AI space and its stock offers a more stable and diversified approach as compared to investing in a chip maker.
- Meta Platforms (META): Investing heavily in expanding its AI infrastructure to enhance its core products and business. If DeepSeek's cost-effective methods become widespread, Meta could significantly benefit from reduced development expenses. You can find out more on how to invest in Meta Platforms here.
Step-by-Step Guide: Investing in AI Stocks
Here’s how you can invest in these DeepSeek alternatives:
- Open Your Brokerage Account: Log in to your investment platform.
- Search for the Stock: Enter the stock ticker (e.g., NVDA for Nvidia) or the company name in the search bar.
- Determine the Number of Shares: Decide how much capital to allocate based on your investment goals. For guidance, you can learn how many shares to buy.
- Select Order Type: Choose a market order for immediate purchase at the current price or a limit order to set your desired price. Understand the difference between them by reading our guide on market order vs. limit order.
- Submit Your Order: Confirm the details and execute the trade.
- Review Your Purchase: Monitor your portfolio to ensure the order was fulfilled correctly.
Evaluating a Potential DeepSeek IPO
While a DeepSeek IPO is not imminent, keep these factors in mind should it occur:
- Transparency: Assess the company's openness regarding the resources used to train its AI models. The reported $6 million cost is viewed skeptically by many industry experts.
- Geopolitical Risks: Consider potential risks associated with investing in Chinese companies, including export bans, regulatory uncertainties, and transparency concerns.
ETFs for AI Exposure
Another way to gain exposure to AI is through exchange-traded funds (ETFs). Some ETFs with significant holdings in AI-related companies include:
- Invesco China Technology ETF (CQQQ): Invests broadly in Chinese technology stocks, offering exposure to the Chinese tech market.
- Global X Robotics & Artificial Intelligence ETF (BOTZ): Focuses on companies poised to benefit from the proliferation of AI and robotics.
- iShares Future AI & Tech ETF (ARTY): Targets AI innovators across various segments like generative AI, AI infrastructure, and AI services.
The Bottom Line
DeepSeek's innovative approach to AI model training has the potential to disrupt the AI industry. While direct investment in DeepSeek is currently unavailable, investors can explore alternative investment options like Nvidia, Microsoft, and Meta, as well as AI-focused ETFs, to participate in the long-term growth of artificial intelligence.
