Perpetual Traffic Podcast Episode Summary

Episode Title: DeepSeek Explained: What Marketers Need to Know
Release Date: January 31, 2025
Hosts: Ralph Burns and Lauren E. Petrullo
Produced by: Tier 11

Introduction

In the January 31, 2025 episode of the Perpetual Traffic podcast, hosts Ralph Burns and Lauren E. Petrullo delve into the emerging AI phenomenon known as DeepSeek. As leaders in digital marketing and AI strategies, they aim to elucidate what DeepSeek is, its potential impact on the AI landscape, and its relevance for marketers navigating the rapidly evolving digital ecosystem.

Understanding DeepSeek

Lauren opens the discussion by introducing DeepSeek as a groundbreaking AI platform developed by a relatively unknown Chinese firm, High Flyer, led by CEO Lang Wen Feng. Unlike traditional AI startups, High Flyer didn’t start specifically for AI but pivoted to create DeepSeek, which promises to revolutionize the AI industry by offering powerful AI solutions at a fraction of the cost.

Lauren E. Petrullo [00:23]: "Deep Seek is a Chinese AI firm that seemingly kind of came out of nowhere. It wasn't really even a startup specifically for AI."

DeepSeek aims to power large language models akin to ChatGPT and Gemini but at a significantly reduced cost—potentially 1/10th to 1/100th of existing solutions. This drastic cost reduction is positioned to democratize access to advanced AI technologies, making them attainable for small businesses and startups that previously couldn't afford such investments.

Comparison with Existing AI Models

Ralph compares DeepSeek with other prominent AI models like ChatGPT and Gemini, noting his preference for Gemini due to its effectiveness in his tasks. He highlights that DeepSeek represents the next evolutionary step in AI technology.

Ralph Burns [01:30]: "If you don't know what Deep Seek is, maybe you should read the news every now and then... it's really interesting because it's the next evolution."

Lauren adds that DeepSeek’s affordability is a game-changer, especially considering the high costs associated with current AI infrastructure, such as Nvidia's H100 GPUs, which can cost up to $45,000 per unit.

Lauren E. Petrullo [05:44]: "The H100 chip from Nvidia... costs about $40,000, which is insanely expensive. Deep Seek is offering AI at a fraction of that cost."

Market Impact and Innovation

The hosts draw parallels to historical examples of innovation driven by competition. Lauren cites the rivalry between Universal Studios and Disney in Central Florida, where the introduction of Harry Potter World by Universal forced Disney to innovate further, resulting in a thriving economy through continuous enhancements and competition.

Lauren E. Petrullo [04:11]: "It's like forced innovation... Central Florida then got new Fantasyland... the Central Florida economy grew because of that competition."

Similarly, DeepSeek's entry into the AI market is expected to spur innovation by making advanced AI accessible to a broader range of businesses. This accessibility can lead to increased competition and advancements in AI applications across various sectors.

Data Privacy and Security Concerns

A significant portion of the discussion addresses the privacy and security implications of using DeepSeek. Lauren raises concerns about DeepSeek's data practices, noting that user data is stored on servers in China, which may be accessible to the Chinese government.

Lauren E. Petrullo [08:31]: "The terms and conditions of Deep Seek expressly state that they will use any inputs you provide it to train its model and that all data is stored on Chinese servers inside the People's Republic of China."

Ralph echoes these concerns, emphasizing the importance of understanding where and how data is stored, especially in the context of potential geopolitical tensions and data sovereignty issues.

Ralph Burns [15:26]: "China, that the government you do not own, it may have access to."

The hosts compare DeepSeek's data storage practices to those of other major tech companies like Google and Meta, highlighting that data security is a widespread issue across all platforms. They suggest that while DeepSeek poses unique risks due to its location, data privacy concerns are not exclusive to this new AI platform.

Lauren E. Petrullo [12:04]: "Every single software that you interact with, we live in the space that we work on the cloud. Where does that cloud physically reside?"

DeepSeek’s Features and Capabilities

DeepSeek's R1 model stands out for its ability to excel at tasks requiring logical reasoning, problem-solving, and step-by-step analysis. Ralph highlights that DeepSeek not only matches but potentially surpasses the capabilities of established models like ChatGPT in certain areas.

Lauren E. Petrullo [14:00]: "Deep Seek R1 model excels at tasks that require logic and reasoning, deduction, step by step analysis... it's accessible and it's open source."

Additionally, DeepSeek claims to reduce bias in its AI outputs by curating diverse training data and avoiding traditional fine-tuning methods, aiming for a more neutral and objective AI system. This feature is particularly appealing for industries where factual accuracy and impartiality are paramount, such as scientific research, logistics, and education.

Furthermore, DeepSeek's open-source nature fosters collaboration akin to platforms like Linux, potentially accelerating innovation and customization among developers and businesses.

Applications for Marketers

For marketers, DeepSeek offers several promising applications:

1. Advanced Analytics and Strategy Development: DeepSeek's reasoning capabilities can enhance strategic planning and complex problem-solving tasks.
2. Content Creation and Optimization: The AI can assist in generating high-quality, unbiased content tailored to specific audience segments.
3. Customer Insights: By analyzing large datasets more efficiently, DeepSeek can provide deeper insights into consumer behavior and preferences.
4. Automation of Routine Tasks: Automating repetitive marketing tasks can free up time for creative and strategic initiatives.

However, marketers must weigh these benefits against the potential risks associated with data privacy and the ethical use of AI-generated content.

Hosts’ Perspectives and Company Plans

Lauren and Ralph share their personal and professional stances on adopting DeepSeek. Lauren expresses excitement about the innovation DeepSeek represents but remains cautious due to data privacy concerns.

Lauren E. Petrullo [05:00]: "Deep seek coming in, having a more affordable and potentially better AI solution will mean that more small businesses will have access to the AI technology that they were limited to."

Ralph discusses their company's approach, indicating that Tier 11 is currently in the research phase, evaluating whether to integrate DeepSeek into their AI assistants. The decision hinges on understanding data ownership and ensuring compatibility with their privacy standards.

Ralph Burns [18:39]: "We're evaluating whether or not this will become a solution we'll introduce for our company and introduce for our clients. Right now, obviously we're not making any decisions because there's so much to be known and understood about it."

Both hosts emphasize the importance of informed decision-making, encouraging listeners to stay updated as the situation evolves.

Conclusion

The episode concludes with Ralph and Lauren acknowledging the significant yet uncertain role DeepSeek is poised to play in the future of AI and digital marketing. They urge listeners to stay informed and critically assess the implications of adopting new AI technologies, balancing innovation with responsible data practices.

Ralph Burns [20:12]: "Our decisions are... evaluating whether or not this will become a solution we'll introduce for our company and introduce for our clients."

Lauren E. Petrullo [20:48]: "Tell us on Spotify what you think."

They invite listeners to engage with them through ratings, reviews, and comments, indicating a commitment to ongoing dialogue about the evolving AI landscape.

Notable Quotes:

• Lauren E. Petrullo [00:23]: "If you don't know what Deep Seek is, maybe you should read the news every now and then... it's really interesting because it's the next evolution."

• Ralph Burns [01:30]: "If you don't know what Deep Seek is, maybe you should read the news every now and then... it's really interesting because it's the next evolution."

• Lauren E. Petrullo [05:44]: "The H100 chip from Nvidia... costs about $40,000, which is insanely expensive. Deep Seek is offering AI at a fraction of that cost."

• Lauren E. Petrullo [08:31]: "The terms and conditions of Deep Seek expressly state that they will use any inputs you provide it to train its model and that all data is stored on Chinese servers inside the People's Republic of China."

• Ralph Burns [18:39]: "We're evaluating whether or not this will become a solution we'll introduce for our company and introduce for our clients."

This episode of Perpetual Traffic provides a comprehensive overview of DeepSeek, highlighting its potential to transform the AI landscape while meticulously examining the associated privacy implications. For marketers and business leaders, understanding these dynamics is crucial for making informed decisions about integrating AI into their strategies.