What Is DeepSeek and How to Buy DeepSeek Stock in Canada?

The AI investment landscape faced a seismic shift in January 2025 when a once-obscure Chinese AI app, DeepSeek, surged to become the most downloaded free app on the App Store—dethroning ChatGPT despite operating on a leaner budget and limited access to advanced chips like those from Nvidia. This unexpected breakthrough not only rattled the valuations of U.S. tech giants but also spotlighted DeepSeek as a disruptive force in global AI innovation.

For Canadian investors, the rise of this underdog presents a unique opportunity to diversify into high-growth markets. This article will explore what makes DeepSeek so remarkable and teach you how to buy DeepSeek stock in Canada. Let’s get started!

What is DeepSeek?

DeepSeek is an innovative AI research firm headquartered in Hangzhou, China, established in July 2023 by Liang Wenfeng, a former hedge fund strategist, and supported by High-Flyer Quant, a powerhouse in quantitative finance. The company has carved a niche in the AI sector by focusing on algorithm optimization and fostering a collaborative development model, positioning itself as a formidable challenger to the U.S.-led AI industry.

Since its inception, DeepSeek has introduced cutting-edge models such as DeepSeek-V3 and DeepSeek-R1, which reportedly rival OpenAI’s reasoning capabilities while operating at significantly lower costs. Unlike many proprietary systems, DeepSeek’s models are freely accessible to the public, allowing users to modify, adapt, and share them—a strategy that has accelerated its global influence.

Remarkably, DeepSeek achieved these milestones despite facing U.S. export bans on advanced AI chips like Nvidia’s H100 and A100. Rather than stalling progress, these constraints spurred the company to pioneer creative solutions for maximizing chip efficiency, techniques now being closely scrutinized by competitors.

What makes DeepSeek so remarkable?

DeepSeek stands out in the AI landscape due to its groundbreaking approach to balancing cost, efficiency, and performance. Here’s how it diverges from traditional AI models:

1. Unmatched Cost Efficiency & Speed

While traditional models like OpenAI’s GPT-4 require hundreds of millions of dollars and years to develop, DeepSeek-V3 was built in just 55 days at a fraction of the cost (around $5.6 million). For comparison, this is roughly 1/10th the budget of Meta’s Llama-3.1.

2. Implementation of the Mixture-of-Experts (MoE) framework

Unlike traditional Transformer-based models that utilize all parameters for every task, DeepSeek’s MoE framework dynamically selects specialized "expert" sub-networks tailored to specific inputs. This approach reduces computational costs by up to 80% while maintaining accuracy comparable to trillion-parameter giants like GPT-4. The outcome is faster processing, lower energy consumption, and scalable performance.

3. Precision Innovations: FP8 & DualPipe

DeepSeek leverages FP8 mixed-precision computing (a lighter alternative to standard FP16) combined with its proprietary DualPipe algorithm, which optimizes parallel data processing. This dual strategy reduces hardware demands by 40% while accelerating training speeds—a stark contrast to resource-heavy traditional models.

4. Enhancement for the Local Chinese Market

DeepSeek is specifically optimized for processing the Chinese language. Unlike OpenAI's GPT series, which primarily focuses on English and has limitations in handling Chinese language tasks, DeepSeek has been trained on extensive Chinese datasets. This enables it to provide more precise and reliable Chinese language support.

Is DeepSeek publicly traded?

At present, DeepSeek operates as a private entity, which means its shares are not available for trading on public markets. Unlike companies that are publicly listed, private companies do not permit retail investors to purchase stock through conventional exchanges. Therefore, unless DeepSeek decides to go public through an initial public offering (IPO) in the future, direct investment options remain inaccessible to the general public.

However, investors can still engage with the AI sector by focusing on publicly traded companies that either collaborate with DeepSeek or benefit from its technology. By understanding the broader investment landscape, investors can position themselves for a potential IPO or explore other opportunities within AI investments.

When will DeepSeek IPO?

As of early 2025, DeepSeek has not scheduled an initial public offering (IPO), and it seems unlikely that the AI start-up will go public in the near future. Being in the early stages of development, the company has yet to begin commercializing its latest AI model, which suggests it may be some time before DeepSeek considers going public.

How does DeepSeek affect AI investing?

DeepSeek's influence on AI investing presents unique opportunities and considerations for Canadian investors. Although DeepSeek itself remains a private company and does not offer direct investment opportunities through public markets, its technological advancements and collaborations can impact the broader AI ecosystem.

Canadian investors can look to publicly traded companies within Canada or internationally that partner with or benefit from DeepSeek's innovations. By doing so, they can indirectly participate in the growth and development of AI technologies.

Furthermore, Canadian investors should keep an eye on potential future developments, such as DeepSeek's possible initial public offering (IPO), which could open direct investment avenues.

Top 8 DeepSeek-related stocks for Canadian investors

As DeepSeek's stock is not available on public markets, Canadian investors might explore indirect exposure by investing in related companies. Moomoo Canada offers a specific section called "DeepSeek Beneficiaries," which highlights stocks that could potentially gain from advancements in AI technology.

By investing in these companies, investors can engage in AI-driven growth without requiring direct access to DeepSeek shares. Businesses that provide AI infrastructure, cloud computing services, or cutting-edge AI applications might experience gains as DeepSeek continues its innovative efforts.

Here we provide the top 8 DeepSeek-related stocks that Canadian investors can take a look!

Microsoft (MSFT)

Microsoft has solidified its position as a global leader in artificial intelligence, leveraging its Azure cloud platform, strategic partnership with OpenAI, and seamless integration of AI across products like Copilot for Microsoft 365. Microsoft’s stock has surged 40% since 2023, outperforming the S&P 500.

Meta Platforms

Meta Platforms is making substantial investments in artificial intelligence, with plans to allocate up to $65 billion to enhance its AI infrastructure in early 2025, shortly after DeepSeek introduced its cost-effective breakthrough. This investment marks a significant 50% increase compared to the previous year.

Notably, DeepSeek’s breakthroughs in budget-friendly AI development could indirectly benefit Meta by potentially lowering R&D costs for advanced algorithms and hardware optimization. Should DeepSeek's cost-efficient methodology gain industry traction, Meta stands to significantly reduce its own AI development expenses—a potential game-changer for scaling its technology ecosystem.

Applovin Corp (APP)

Applovin, a leader in AI-driven mobile advertising technology, is well-positioned to benefit from the AI surge sparked by innovations like DeepSeek’s cost-effective models. The company’s proprietary AI engine, AXON, enhances app monetization and user acquisition for developers, providing a vital advantage as advertisers seek more intelligent and efficient solutions. With DeepSeek’s open-source advancements potentially reducing AI infrastructure costs across the industry, Applovin could further streamline its ad-targeting algorithms while reducing operational expenses.

C3.ai (AI)

C3.ai is a leading enterprise AI software provider, offering a robust platform for developing and managing large-scale AI applications. Positioned to meet the rising demand for AI-driven solutions across industries like energy and healthcare, C3.ai stands to benefit significantly from DeepSeek's cost-efficient breakthroughs, which could lower AI infrastructure costs. This synergy enhances C3.ai's market position, making its stock attractive for investors seeking to capitalize on the expanding AI landscape and leverage DeepSeek's innovations for a competitive edge.

NVIDIA (NVDA)

While DeepSeek bypasses U.S. chip restrictions, NVIDIA remains the backbone of global AI infrastructure. Its GPUs power competitors and collaborators alike, and breakthroughs like DeepSeek’s efficiency hacks could drive demand for cheaper, optimized hardware. Recent R&D in AI-specific chips (e.g., Grace Hopper Superchips) keeps NVIDIA critical to the ecosystem.

Kingsoft Cloud (KC)

Kingsoft Cloud is a leading provider of cloud services in China, offering an extensive range of solutions, including cloud computing, storage, and networking. The company is well-regarded for its robust infrastructure and commitment to innovation, serving a diverse clientele across industries such as gaming, finance, and healthcare. As the demand for cloud services continues to grow, Kingsoft Cloud is strategically positioned to expand its market share.

The recent advancements by DeepSeek, particularly in cost-efficient AI models, present an opportunity for Kingsoft Cloud to enhance its service offerings by integrating more affordable AI-driven solutions. This potential synergy not only strengthens Kingsoft Cloud's competitive edge but also makes its stock an attractive option for investors looking to benefit from the ongoing expansion of cloud and AI technologies.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor Manufacturing Company (TSMC) is a global leader in semiconductor manufacturing, renowned for its cutting-edge technology and high-performance chip production. As DeepSeek’s workarounds for chip shortages gain traction, TSMC’s cutting-edge fabrication (used by AMD, NVIDIA, and Apple) will remain indispensable. The company’s 3nm and 5nm chip production directly supports AI hardware evolution.

Arista Networks (ANET)

Arista's high-speed networking solutions are essential for AI data centers, providing the backbone for efficient data transfer. DeepSeek's emphasis on algorithmic efficiency complements Arista's focus on creating low-latency, energy-efficient infrastructure. Together, they form a powerful combination that could lead to dominance in next-generation AI clusters, offering faster and more sustainable solutions for the growing demands of AI technology.

How to buy DeepSeek stock in Canada?

Now you may be wondering how to buy DeepSeek stock in Canada? Don’t worry, we provide a step-by-step guide if you are new to investing.

Step 1: Open a brokerage account

Have you opened a brokerage account yet? If you're still choosing where to open one, think about whether the company provides products and services that match your requirements. There are many well-known stock trading platforms in Canada, like Questrade, Wealthsimple Trade or moomoo Canada. Choose one that suits you and open an account!

Step 2: Add funds to your account

After setting up your account, you can deposit money through a bank transfer, debit card, or any other method supported by your platform.

Step 3: Research and select your DeepSeek-related stocks

Since DeepSeek is not yet listed, its stock cannot be traded publicly. However, you can choose to buy DeepSeek-related stocks, such as the stocks mentioned above.

Step 4: Buy stocks

After identifying the stocks you're interested in, choose the amount you wish to invest and place an order to purchase them.

FAQs about investing in DeepSeek

1. Who owns DeepSeek?

DeepSeek is a privately held AI research company founded in July 2023 by Liang Wenfeng, a former hedge fund executive with a strong background in quantitative finance and technology innovation. The company is headquartered in Hangzhou, China, and has quickly gained attention for its cost-efficient AI models and open-source approach.

2. Is DeepSeek profitable?

DeepSeek is mainly a research-focused AI initiative rather than a profit-oriented organization. Supported by the Beijing Academy of Artificial Intelligence, it prioritizes open-source development over commercial revenue generation.

In contrast to OpenAI, which earns income through ChatGPT subscriptions and business collaborations, DeepSeek’s financial structure probably depends on government funding, academic grants, or institutional backing rather than direct profit-making.

3. Where to buy DeepSeek stock?

As of now, DeepSeek is not a publicly traded company, so you cannot purchase its stock on any exchange. For Canadian investors interested in AI and technology sectors, consider looking into publicly listed companies on the Toronto Stock Exchange (TSX) or exploring U.S. exchanges like the NASDAQ or NYSE for AI-focused companies.

If you want to buy stocks listed on TSX, NASDAQ, or NYSE, you can use brokers such as moomoo Canada, Questrade or Wealthsimple Trade. Additionally, keeping an eye on news about DeepSeek could provide updates if they decide to go public in the future.

4. What is the best AI company to invest in?

Determining the best AI company to invest in depends on various factors, including your investment goals, risk tolerance, and market conditions. For Canadian investors, some notable AI-focused companies and tech firms with AI initiatives on the Toronto Stock Exchange (TSX) include Shopify and OpenText. Additionally, many Canadian investors look to U.S.-based AI giants like NVIDIA, Alphabet (Google's parent company), and Microsoft, which are listed on NASDAQ or the NYSE.