Two Models That Actually Make Sense

DeepSeek keeps it simple - two models, clear names. No "gpt-4-turbo-preview-0613-with-experimental-function-calling-v2" bullshit.

deepseek-chat - The Basic One

Your standard chat model that doesn't overthink everything. Works like GPT-4 but cheaper and faster. I use it for code reviews, explaining functions, basic debugging. Handles JSON mode without randomly wrapping everything in markdown code blocks like Claude does.

Function calling is solid. Better than GPT-4 at following schemas actually.

deepseek-reasoner - The One That Shows Its Work

This is why I switched. When I'm stuck on a problem for hours, 7 extra seconds doesn't matter. What matters is not having to guess why the AI is wrong.

Had this recursive thing that was totally fucked. Spent way too long on it. o1 gave me some useless "try this" bullshit with zero explanation. DeepSeek actually walked through the logic and showed me where I was hitting stack limits.

The reasoning traces are massive - like walls of text explaining every step. But when you're debugging production at midnight and need to understand why something's broken, that context saves your ass.

OpenAI Compatibility (Actually Works)

Drop-in replacement. Literally just:

client = OpenAI(
    base_url="https://api.deepseek.com",
    api_key="your-deepseek-key"
)

My entire codebase worked instantly. No parameter incompatibilities or weird edge cases.

Found out the hard way that reasoner can't do function calls. My entire agent framework just... stopped working. Took me 3 hours to figure out why. If you need tools, use deepseek-chat.

Automatic Caching Actually Works

The caching is automatic and aggressive. Same system prompt across thousands of requests? Those tokens cost $0.07 per million instead of $0.55.

My OpenAI bill was getting stupid expensive - maybe $150+ on bad days for batch document processing. DeepSeek cut that way down, like $30-40 on most days, sometimes less if the caching hits right.

The trick: put your repeated stuff (system prompts, examples) at the start of your messages. Cached segments have to be prefixes.

DeepSeek API vs The Competition

Feature

DeepSeek

OpenAI

Claude

Gemini

Input Price

$0.55/1M ($0.07 cached)

$2.50/1M

$3.00/1M

$1.25/1M

Output Price

$2.19/1M

$10.00/1M

$15.00/1M

$5.00/1M

Context

128K

128K

200K

1M

Shows Reasoning

✅ Full traces

✅ o1 only

Function Calls

✅ Better than GPT-4

JSON Mode

✅ Clean output

✅ Buggy

Auto Caching

✅ Aggressive

✅ Basic

OpenAI Drop-in

✅ Perfect

Self-hostable

Real weights

MATH-500

Crushes it

94.8%

~88%

~86%

Max Output

64K (reasoner)

16K

8K

8K

How This Thing Actually Works

DeepSeek built a 671B parameter model but only runs 37B parameters per request. It's got all these experts but only fires up the ones it needs, so it's not burning through the full model for simple stuff.

The MoE Approach (Without the Buzzword Bullshit)

Most models waste compute running everything for simple requests. DeepSeek only spins up the parts it needs. Ask for Python help? Code experts activate. Math problem? Math experts wake up.

This is how they undercut OpenAI's pricing by 4x. They're not burning through a full 671B model to write your grocery list.

The reasoning model uses the same architecture but different training. Instead of jumping to conclusions, they taught it to show its work. Takes longer but you actually understand what went wrong.

Anyway, here's how this thing actually performs...

Real Performance (Not Benchmark Theater)

Sure, it crushes MATH-500 vs GPT-4, looks good on paper. But benchmarks are mostly bullshit.

Here's what actually matters: It's solid for code reviews - caught some bugs I missed. Math is hit or miss though, sometimes it gets weird with edge cases. The reasoning model helped me untangle a fucked up algorithm that had me stuck for 6 hours.

Reasoning takes longer than o1 - maybe 80-90 seconds. But when you're debugging something at 2am, you care about getting the right answer, not saving 10 seconds.

Drop-in Replacement That Actually Works

Change two lines:

client = OpenAI(
    base_url=\"https://api.deepseek.com\",
    api_key=\"sk-your-deepseek-key\"
)

That's it. My entire codebase worked without changes. No parameter mapping, no weird edge cases.

The auto-caching is aggressive - sometimes saves 80% on repeated prompts. But reasoner can't do function calls. Took me like 3 attempts to figure out why my agent stopped working - turned out I was hitting the reasoning model instead of chat for tool calls.

Questions You'll Actually Ask

Q

Will this save me money or is it marketing bullshit?

A

My Open

AI bill was getting stupid expensive

  • maybe $150+ on bad days for batch processing. DeepSeek cut that way down to like $30-40 most days, sometimes less. The savings are real.But you get what you pay for. It's maybe 85-90% as good as GPT-4o. For most stuff, that's fine. For really subtle work, you might still need the expensive models.
Q

Chat vs Reasoner - which one?

A

Chat for everything normal. Fast, works with function calls, handles JSON properly.Reasoner when you're stuck and need to see the thinking. Takes forever but shows all its work. Can't do function calls though

  • learned this the hard way.
Q

Does OpenAI code work?

A

Yeah, mostly. Change the base URL and API key, that's it:pythonclient = OpenAI( base_url="https://api.deepseek.com", api_key="sk-your-key")Model names are different (deepseek-chat vs gpt-4o). The reasoning responses have extra fields you might not expect. But 95% of stuff just works.

Q

What about the reasoning traces?

A

This is why I switched. o1 gives you answers with zero explanation. Deep

Seek shows the full thinking process

  • like walls of reasoning before the answer.When you're debugging at 2am and the answer is wrong, being able to see exactly where it went off track is huge.
Q

Does the caching actually work?

A

Yeah, and it's aggressive. Same system prompt across hundreds of requests? Those tokens cost basically nothing.Put your repeated stuff first in the prompt. Caching only works on prefixes, not stuff scattered throughout.The caching works great... when it works. Sometimes it doesn't cache shit and you wonder why your bill spiked.

Q

Is it reliable for production?

A

They've been pretty reliable, though they did have that weird outage a few weeks back. At least their status page doesn't lie like some companies.Main risk is they're new. Less redundancy than OpenAI. But for the cost savings, worth the slight risk.DeepSeek is pretty good. Sometimes great, sometimes it gets weird with edge cases.

Q

Can I self-host it?

A

They release the actual model weights, which is refreshing. But you need serious hardware

  • multiple A100s or H100s. Tried self-hosting on rented H100s. Holy shit, the power costs alone made it not worth it. Just use their API unless you're Google.
Q

What about sensitive data?

A

It's a Chinese company. I wouldn't send anything I wouldn't want Beijing to see. For sensitive stuff, sanitize your data or self-host.

Q

Rate limits?

A

Hit them occasionally during heavy spikes. You have to email for increases, can't just pay more like OpenAI. Usually takes a day to hear back.The reasoning is helpful when you're stuck, but 90 seconds is fucking forever when you're in flow state.

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