Open-source software has a unique appeal that allows innovative ideas to thrive, and DeepSeek stands as a testament to this principle. With major tech giants like Tencent, Baidu, and Alibaba integrating DeepSeek into their ecosystem, the capabilities of this AI model are being harnessed across a diverse range of established products. This early success, however, raises significant questions about the platform's future—specifically regarding commercialization.

Investors, such as Zhu Xiaohu, have openly expressed skepticism regarding the financial viability of DeepSeek’s business model. While the parent company, Huanshun, enjoys vast financial resources—having surpassed trillion-yuan management scale in 2021—the ambition of its CEO, Liang Wenfeng, is not solely focused on profit generation. Nevertheless, a sustainable and lucrative business model is crucial for technological advancements to continue being realized.

The road ahead will be rife with challenges. On the technological front, DeepSeek faces increasing competition from fellow open-source advocates. Baidu and Alibaba, among others, are initiating their own forays into open-source development, while significant industry players are reassessing their strategies surrounding tools like OpenAI. User experiences, particularly from larger firms, can be more seamless than those offered by DeepSeek. This places Huanshun in a precarious position as it enters the next developmental phase.

How, then, does DeepSeek plan on generating revenue? Through a proprietary model akin to traditional proprietary applications, monetization would be straightforward: the company could charge customers directly. However, DeepSeek’s open-source approach complicates this equation. Both individual and corporate users can access one of the most advanced models without any financial obligation, which indeed presents a convoluted challenge for revenue generation.

Despite the inherent complexities, several successful revenue models have been established in the open-source realm. One such model involves creating an integrated system around a free product, ensuring the company maintains a critical touchpoint for monetization. Google’s Android operating system is a prime example; while it is open-source and free, Google tightly controls supplementary services pivotal for revenue, such as advertisements and application downloads through the Google Play store. This method ensures that manufacturers who wish to use the Android platform still contribute to Google’s business through embedded services.

However, it’s essential to differentiate that DeepSeek cannot be directly compared to an operating system. As a technical core rather than a comprehensive operating system like Android, establishing a similar ecosystem around DeepSeek may be considerably more challenging.

Another viable monetization model is the partial open-source strategy, as demonstrated by MySQL. This popular database management tool offers two versions: a community version, which is freely available but lacks monetization features, and a proprietary enterprise version requiring a payment for access to enhanced capabilities, support, and stability.

Nonetheless, this model doesn't neatly map onto DeepSeek's current strategy, which does not charge users for commercial adaptations of its models either. The flexibility in its licensing agreement indicates that while any derived product can be developed and commercialized, DeepSeek retains no claim over the profits, promoting ultimate technology dissemination.

Recently, DeepSeek has taken further steps in community engagement, announcing through social media that users will be updated periodically about its progress. This transparency mirrors Zhu Xiaohu’s comments about DeepSeek’s extensive open-source nature being an obstacle to its pathway to profitable commercialization.

Additionally, we can observe the open-source-plus-product/service model, reminiscent of the Chrome ecosystem. Here, while the core of Chrome—the Chromium engine—is open-source and accessible to several other browsers, Google's Chrome is distinctly a product reserved for their use. This allows Google to leverage branding and service strategies, converting users into extensive advertising revenue while maintaining an overwhelming market presence through their ecosystem.

Another noteworthy example is Red Hat, which successfully commercialized the Linux kernel by providing a refined enterprise-grade operating system, thus generating substantial profits through selling software and professional services.

Based on the scant data currently available, it seems plausible that DeepSeek might emulate the operational strategies of Chrome and Red Hat: the AI model can be offered for free, while services would generate revenue. Each large company’s adoption of DeepSeek invariably acts as a form of advocacy, channeling massive user engagement toward this open-source model. The brand value of DeepSeek will flourish together with the technology, likely leading to subscription fees and API calls as primary revenue streams.

In the enterprise space, while initially free, deploying and integrating DeepSeek’s services entails associated costs. Given that Huanshun controls pivotal aspects of model updates and training methodologies, they possess an innate advantage when compared to third-party providers. However, this open market will foster competition, as established industry players will begin packaging their own services and products utilizing DeepSeek’s technology.

The competitive landscape becomes even murkier when considering the obstacles inherent in establishing brand presence. Despite DeepSeek's initial success, even established players can rapidly fluctuate in rankings and user engagement. For instance, following a peak in user engagement, DeepSeek's app saw its active user statistics plummet in the face of rising prominence of competing services.

Data from research institutions indicate that, by mid-February 2025, DeepSeek app daily active users dwindled by approximately 10%, while its standing among app store rankings suffered a notable drop from first to thirtieth position within a month. Beyond mere fluctuations, server capacity emerged as a significant concern during these declines as the official site cited ‘API performance issues.’ Service interruptions led frustrated users, some of whom have turned to competing AI solutions.

This situation highlights a critical junction for DeepSeek, especially as formidable market players refine their services. The ability to optimize resources and innovate rapidly will be instrumental in not only maintaining user interest but expanding its project into the market successfully amidst formidable competition.

While Huanshun has demonstrated the ability to attract substantial investment, they have also notably declined several lucrative propositions, indicating a carefully considered approach to commercialization. This is especially pertinent as the expectations and requirements from investors might conflict with the existing company philosophy focused on technology advancement rather than immediate profit.

The value of strategizing for long-term success over short-term monetary gain sets Liang Wenfeng apart from many contemporaries. With no visible indicators of advertising on the consumer end to further bolster its recognition, it is evident that DeepSeek is more inclined toward promoting its cutting-edge technology than basing its progress solely on financial metrics. This choice, underpinned by a commitment to innovation over rigid commercialization—replicating a successful path previously taken by tech giants—could indeed yield profitable outcomes down the line.

DeepSeek’s commitment to maintaining an ethos of innovation has the potential to elevate not only itself but possibly the broader techno-economic landscape. While the obstacles may seem daunting, the foundation built upon research and development and sustained by an open-source model will fundamentally enhance both the company's brand and the technology portfolio. In this light, as long as DeepSeek continues to represent the pinnacle of open-source LLM technology, its commercial future is likely promising.