DeepSeek
A family of large language models from Chinese AI lab DeepSeek, covering general chat and step-by-step reasoning. The model weights are published under the permissive MIT licence, so they can be downloaded and self-hosted, and DeepSeek also runs its own chat app and paid API.
● Use Cases
- →Self-hosting a capable model for internal document tasks
- →Low-cost API access for coding and analysis experiments
- →Fine-tuning an open model on your own domain data
- →Benchmarking against commercial models before choosing a provider
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About DeepSeek
What is DeepSeek?
A family of large language models from Chinese AI lab DeepSeek, covering general chat and step-by-step reasoning. The model weights are published under the permissive MIT licence, so they can be downloaded and self-hosted, and DeepSeek also runs its own chat app and paid API. DeepSeek is a specialised AI tool in the Open Model category that applies machine learning to automate, enhance, or augment tasks in this domain.
Treat DeepSeek's hosted chat app and API differently from the open weights. DeepSeek's privacy policy says it collects and stores personal data in China. Since February 2025, PSPF Direction 001-2025 has required Australian Government entities to prevent use of DeepSeek products, applications and web services and remove them from government systems and devices. Check your organisation's policy and client requirements first. Self-hosting the weights, or using the DeepSeek models AWS Bedrock offers in its Sydney region, keeps prompts onshore and outside DeepSeek's own services.
How Australian Businesses Use DeepSeek
Australian businesses use Open Model AI tools to reduce manual workload, improve output quality, and operate more efficiently. The specific applications vary by organisation but typically focus on the most time-intensive processes in this category.
Key Features
- ✓Open model weights published under the MIT licence for self-hosting
- ✓Reasoning mode that works through problems step by step before answering
- ✓OpenAI-compatible API with per-token billing and context caching
- ✓Mixture-of-experts architecture that lowers inference cost for its size
- ✓Managed versions available through several major cloud platforms
Best For
- →Engineering teams able to self-host open models on their own GPUs
- →Researchers benchmarking open models against commercial alternatives
- →Organisations using managed cloud versions inside an Australian region
Pros & Cons of DeepSeek
✓ Strengths
- +Open weights with a permissive licence for commercial use
- +Strong reasoning and coding ability for an open model
- +Can run entirely on infrastructure you control
- +Offered by several major cloud platforms as a managed model
⚠ Limitations
- –Hosted app and API process data in China
- –Full-size models need substantial GPU capacity to self-host
- –Some outputs reflect content restrictions on sensitive political topics
- –Government and some corporate policies restrict its use
Pricing
Model weights are free to download under an open licence; self-hosting costs come from your own GPUs or cloud. DeepSeek's chat app is free, and its API is billed per token. Several cloud platforms also host the models on their own usage pricing. See deepseek.com.
Details checked against the vendor's website in October 2026. Pricing changes often, so confirm current plans at deepseek.com.
Data Residency & Privacy in Australia
DeepSeek's privacy policy says it collects, processes and stores personal data, including prompts, in the People's Republic of China, and inputs may be used to improve its models unless you opt out. DeepSeek itself offers no Australian hosting option. Running the open weights on your own infrastructure, or through a cloud provider's Australian region, keeps data away from DeepSeek's servers.
Need AI that keeps client data onshore? See private AI hosted in Australia.
Getting Started with DeepSeek in Australia
DeepSeek is available directly at deepseek.com. Sign up for a trial or free tier to evaluate the tool for your specific use case. Identify one clear workflow to start with, measure results over 30 days, and expand from there. Reach out to the vendor's support team for onboarding guidance.
Outside help is most useful when the tool has to connect to existing systems, handle personal information, or be rolled out to a whole team. AI Lab Australia works with businesses across Sydney, Melbourne, Brisbane, Perth and Adelaide on that setup.
Alternatives to DeepSeek
If DeepSeek is not the right fit for your workflow, these tools serve a similar purpose and are worth evaluating:
Compare DeepSeek
Frequently Asked Questions About DeepSeek
Is DeepSeek banned in Australia?
Not for the general public. Since February 2025, a Protective Security Policy Framework direction has required Australian Government entities to remove DeepSeek products and web services from government systems and devices. Private businesses can legally use it, but many have adopted similar restrictions in their own policies.
Does DeepSeek store data in China?
Yes, for its own app and API. DeepSeek's privacy policy states that personal data is collected, processed and stored in China. Self-hosted open weights do not send data to DeepSeek, because the model then runs entirely on infrastructure you choose.
Can I run DeepSeek models in Australia?
Yes. The weights can be downloaded and run on servers in Australia, and AWS Bedrock offers DeepSeek models in its Sydney region. The largest models need substantial GPU capacity, so many organisations start with smaller distilled versions or a managed cloud option.
Is DeepSeek suitable for regulated work?
The hosted app and API are a poor fit for regulated data, given processing in China and government restrictions. Self-hosted or Australian-region managed deployments can work, but you still need to test outputs, document the model's limits and meet sector obligations such as APRA CPS 234 for information security.
Ready to Implement DeepSeek?
AI Lab Australia helps Australian businesses choose, set up and connect tools like DeepSeek to the systems they already run, with privacy and data handling sorted before rollout.