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Underdog DeepSeek Has Democratized Access to Game-Changing AI Tools

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Underdog DeepSeek Has Democratized Access to Game-Changing AI Tools

DeepSeek recently entered the AI space and captured the attention of savvy sports tech executives with a bold and unexpected claim: its open-source models match or surpass the enterprise-grade capabilities of much larger artificial intelligence platforms at a fraction of their cost. The Chinese startup is, in essence, democratizing access to cutting-edge AI tools and making them available to rights owners of all sizes.

Up until now, smaller sports organizations have by and large assumed that the cost of implementing custom AI solutions is prohibitive. Closed models —like those from OpenAI and Google— often come with high subscription fees or require costly cloud-based API calls (on top of any investments in infrastructure that may be needed). 

But with a reported development or training cost of just $6 million —miniscule compared to the hundreds of millions spent by the U.S. tech giants— and by using of cheaper processors, DeepSeek has dramatically reduced operational costs. Rights owners no longer need a massive ‘big tech’ budget to run advanced AI applications or execute high-level modeling.

What a single club may have spent in the past on scouting talent over the course of a season, might be able to fund DeepSeek usage across the entirety of the league for that same period.

While even a modest tech allocation may be tough to find for a resource-constrained organization, the long‑term returns on that investment can be significant and are worth pursuing. When used to its potential, DeepSeek can significantly reduce labor hours and drive revenues, quickly offsetting adoption costs.

It’s been less than a month since DeepSeek’s public launch. So, the tech’s transformative impact on scouting, in‑game strategy, and the fan experience remain largely speculative.

However, early competitive performance benchmarks suggest DeepSeek’s models, particularly DeepSeek-R1, are just as advanced as the industry’s leaders across a multitude of tasks including language processing and advanced mathematical reasoning (note: OpenAI’s GPT-4 and Google Gemini continue to hold a lead in overall language accuracy/factual consistency and up-to-date information retrieval/speed, respectively). 

And by making their technology open-source, the company is inviting teams to tailor tools to their exact needs—a stark contrast to the closed ecosystems of its more prominent competitors.

Feature

DeepSeek

OpenAI GPT-4

Google Gemini

Cost (per million tokens)

$0.14

$7.50

Variable

Open-Source

Yes

No

No

Math Reasoning (MATH-500 benchmark)

97.3%

96.4%

Not public

Customizability

High

Limited

Moderate

Select Performance Metrics

Strong in structured tasks, like math reasoning

Slightly higher overall language accuracy and greater factual consistency

Optimized for up-to-date information retrieval and speed

Additional Tools

Customizable, Self Hosted

Integrated content moderation, real-time updates, and specialized plugins for diverse sectors

Integration with cloud services, advanced analytics, and regular model updates

In theory, DeepSeek could help a MiLB team spot subtle flaws in a young hitter’s swing and recommend targeted adjustments in real-time. That analysis and those insights could lift his batting average, fast track the player’s development, and even drive ticket sales as the prospect rises through the ranks.

Or it could be used to hyper-personalize player training regimens, crafting daily workout plans that account for genetics, injury history, and real-time performance data.

DeepSeek could also be used to gain an edge in-game. The tech can process player data in seconds and suggest an optimal lineup for a given situation, or it can help a coach with a strategic sideline decision using intricate statistical models.

And it has the potential to revolutionize how sports organizations operate off the field too. Enterprise grade AI can power personalized team app experiences (think: custom highlight reels), next-gen fan engagement strategies (think: interactive AR or VR features that blur the lines between spectator and participant), and sponsorship deals that target and reach fans with unprecedented precision (and thus can command more money).

Of course, heightened engagement is correlated with increased fan retention and growth in merchandise and subscription-based content sales.

Some U.S. based properties may be quick to shy away from a Chinese product when sensitive data, like player health metrics or proprietary financial information, is involved. Concerns over data privacy spurred TikTok’s temporary removal from app stores in Jan.

But DeepSeek’s open-source design allows teams to host models on local servers or in private clouds, limiting potential data exposure. 

Nevertheless, American organizations should still carefully evaluate existing cybersecurity measures, legal obligations, and international regulations before integrating the company’s tech into processes.

Data privacy is just one of the factors sports organizations exploring AI integrations must consider. 

As usage levels increase, ethical questions around job displacement are certain to arise too (think: automating tasks like video editing and data analysis will reduce the need for scouts and junior coaches). Finding solutions that balance efficiency with human decency will be critical to preserving good-will and sports’ community-centric nature.

There will likely be far less hesitation about DeepSeek outside the U.S. Strict spending regulations in European soccer makes cost-saving AI appealing to clubs. In Asian and emerging markets, affordability tends to spark rapid adoption and technological advancement. And in global e-sports, where technology is at the forefront, DeepSeek’s real-time insights have the potential to meaningfully enhance competitive play and viewer engagement.

Sports franchises ready to adopt DeepSeek should start with small-scale pilots, perhaps analyzing their minor league team’s practices or launching a limited fan-engagement feature. If early results show a positive ROI and manageable security risks, as discussed above, a phased rollout across scouting, training, and marketing could certainly follow.

DeepSeek is more than just a new AI competitor—its emergence represents a paradigm shift in sports organizations’ ability to access advanced technology. By lowering financial and technical barriers to entry, the challenger company has the potential to spark unprecedented innovation and competitiveness across the industry.

Look for early adopters to gain significant advantages in the seasons —and years— ahead.

About The Author: Former Washington Commanders chief strategy officer Shripal Shah has spent much of the last decade helping media companies, big box retailers, and innovative startups enhance their businesses using AI. He’s now transforming sports businesses using much of the same playbook. 

Shah is also a professor in Georgetown University's Sports Industry Management Program and the author of “Leveling Up With AI: A Strategic Guide to AI in Sports Marketing” and “The Art of Victory: Generative AI and the New Frontier of Global Sports.” You can reach him direct at [email protected].

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