DeepSeek isn’t a side project or just a bunch of quants - these are part of the marketing that people keep repeating blindly for some reason. To build DeepSeek probably requires at least a $1B+ budget. Between their alleged 50,000 H100 GPUs, expensive (and talented) staff, and the sheer cost of iterating across numerous training runs - it all adds up to far, far more than their highly dubious claim of $5.5M. Anyone spending that amount of money isn’t just doing a side project.

The client facing aspect isn’t the problem here. This linked article is talking about the backend having vulnerabilities, not the client facing application. It’s about a database that is accessible from the internet, with no authentication, with unencrypted data sitting in it. High Flyer, the parent company of Deep Seek, already has a lot of backend experience, since that is a core part of the technologies they’ve built to operate the fund. If you’re a quantitative hedge fund, you aren’t just going to be lazy about your backend systems and data security. They have a lot of experience and capability to manage those backend systems just fine.

I’m not saying other companies are perfect either. There’s a long list of American companies that violate user privacy, or have bad security that then gets exploited by (often Chinese or Russian) hackers. But encrypting data in a database seems really basic, and requiring authentication on a database also seems really basic. It would be one thing if exposure of sensitive info required some complicated approach. But this degree of failure raises lots of questions whether such companies can ever be trusted.