𝟯 𝗖𝗼𝗺𝗺𝗼𝗻 𝗠𝗶𝘀𝗰𝗼𝗻𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝘀 𝗔𝗯𝗼𝘂𝘁 DeepSeek

DeepSeek - R1, China’s latest LLM, is making waves—matching OpenAI, Anthropic, Google, and Meta at a fraction of the cost.

Its app has surged to the top of download charts in 140+ countries, but along with the hype come commonly repeated misconceptions.

This is the first in our series debunking common myths—starting with the claim:

Myth: "DeepSeek Sends Your Data to China"

Short answer: It depends on how you use it.

The Chinese company DeepSeek has published two major models:

• DeepSeek - V3 – A general-purpose LLM, similar to GPT-4.

• DeepSeek - R1 – A specialized reasoning model, comparable to OpenAI o1.

Three Ways to Use DeepSeek's Models

The DeepSeek models themselves are open-weight under the MIT license, meaning they can be downloaded and run locally. This eliminates privacy concerns—but only if you can self-host them.

Self-Hosting

Pros: Full control over data—nothing leaves your infrastructure.

Cons: Requires significant computing resources (~$10,000+) and technical expertise.

While self-hosting is the gold standard for privacy and security, only large companies and those with deep technical expertise can afford this route. Most companies will therefore instead depend on external providers hosting the model for them. Currently, the best-performing hosting is done by the company DeepSeek itself.

DeepSeeks's Official API

Pros: Currently by far the cheapest and fastest API provider.

Cons: Data is processed on Chinese servers, with little transparency on retention policies.

For tasks where data privacy is not a concern, DeepSeek’s own API is the fastest and most cost-effective option. So what can those do that don’t have the resources to self-host, but for whom privacy is a concern?

Third-Party API Providers

Pros: Better data transparency and security.

Cons: Can be up to 8x more expensive and slower than DeepSeek’s own API.

For the vast majority of users, a third-party hosted API is the best balance —offering better transparency and compliance without the complexity and cost of self-hosting.

Takeaways

The DeepSeek models themselves are open-weight and safe to use—your main concern should be choosing the right deployment that aligns with your privacy needs.

Myths We'll Tackle Next

• “DeepSeek Cost Just $5M to Train—It’s a Hedge Fund’s Side Project!”

• “Export Controls Forced DeepSeek to Ditch NVIDIA GPUs—Is This the End of U.S. Chip Dominance?”