Deepseek has quickly become a major player in the AI sector, causing disruptions for companies like OpenAI and affecting Nvidia’s stock prices. Deepseek’s development costs are reportedly lower, yet it competes with leading AI models from large companies. However, is Deepseek’s success solely due to its technology?
Deepseek is notable for its unique approach to work culture, especially in China, where the 996 work model is common. This model involves working from 9 AM to 9 PM, six days a week. Many Chinese companies also impose strict KPIs, daily reporting to supervisors, and tracking systems, creating pressure on employees. This environment often stifles innovation and creativity and fosters competition among employees.
In contrast, Deepseek offers its employees significant freedom. The company, consisting of around 150 employees, is organized into small teams focused on specific goals. These teams can freely collaborate with others without the need for supervisors or daily reports. Management intervenes only when a promising idea requires a new focus.
Deepseek’s hiring strategy also sets it apart. Unlike other companies that require extensive experience, Deepseek recruits young graduates, often directly from universities, with no more than three to five years of experience. The company values passion and unconventional problem-solving approaches over experience.
Financially, Deepseek is independent, thanks to funding from its CEO, Liang Wenfeng, who financed the company through his successful hedge fund, High-Flyer. This independence allows Deepseek to operate without relying on government or private investors, unlike other startups that depend on external funding.
While Deepseek’s success might inspire other Chinese companies to adopt similar models, it is likely to remain an exception due to its unique work culture and financial independence. Many companies will continue with the 996 model, either by choice or due to investor requirements. Deepseek’s challenge will be to maintain its independence if it seeks external funding to achieve new milestones, which could compromise the freedom that contributed to its success.
