DeepSeek V4 is a free, open-source AI model developed by a Chinese team that has achieved performance nearly on par with premium models like Claude Opus 4.6 on coding benchmarks (80.6% vs 80.8% on S8), while offering a 1 million token context window and agentic capabilities for autonomous task execution. The model uses a mixture of experts architecture with 1.6 trillion total parameters but only 49 billion active at any time, making it computationally efficient. Its compressed sparse attention mechanism allows it to process large documents without losing context, requiring only 27% of the computational power of previous versions. While it may not match the absolute best models on extremely difficult tasks, it provides a cost-effective alternative for most business applications, with the strategic recommendation being to use premium models for high-stakes tasks and free models like DeepSeek for bulk work and agent workflows.
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Deep Dive
New FREE DeepSeek V4 DESTROYS Claude Code?Added:
New free DeepSeek V4 destroys Claude code. Look, what just happened with DeepSeek is wild. A small team in China dropped a brand new AI called DeepSeek V4. It's free. Weights are open.
>> [music] >> You can run it yourself or use it on their site for nothing. On real coding tests, it's almost tied with Claude Opus 4.6, talking 80.6% on S8 bench verified versus Claude's 80.8%. That's 0.2% apart. For a free open model, that gap is shocking. And on Terminal Bench 2.0, the test that checks if an AI can actually run commands and fix things in your computer like a real coder, DeepSeek V4 Pro hit 67.9%.
Claude got 65.4%. So, on terminal work, the free Chinese model actually beats the paid one. I want to walk you through what this thing can really do, what's inside it, and how regular business owners can use it starting today. Stay with me because the part most people miss is at the end, and it's the part that changes how you should run your business this year. Here's the basic setup. DeepSeek V4 came out on April 24th, 2026. There are two flavors. V4 Pro is the big one with 1.6 trillion total parts, but only 49 billion turn on at any time. That's a smart trick called mixture of experts. Means the model is huge but cheap to run because most of it sleeps until it's needed. The smaller one is V4 Flash with 284 billion parts and 13 billion active. Flash is for fast, cheap, simple jobs. Pro is for hard stuff. Both have a 1 million token memory. That's about 750,000 words. You can drop a whole book or your full website into it and the AI keeps track of all of it. And both are free under the MIT license, which means you can use them in your business with no rules holding you back. Now, I know what some of you are thinking. Free Chinese AI?
Sounds sketchy. I get it. So, let's just look at the numbers from the people who tested it. Codeforces, the hardest coding contest site, DeepSeek V4 Pro scored 3,206. That's the highest any AI has ever hit, higher than GPT 5.4 at 3,068. On LiveCodeBench, it scored 93.5%.
HumanEval, the basic test for if an AI can write working code, it scored about 96%. And here's the part that matters for normal people. DeepSeek V4 Pro was designed for agent work. That means an AI that does jobs by itself.
It files, runs commands, checks its own work, loops back and fixes mistakes.
DeepSeek even said their own staff use V4 Pro inside the company, and they say the feel of it beats Claude Sonnet 4.5 and gets close to Claude Opus 4.6 for daily coding. Thing that really blew my mind is how it handles long memory. Most AI tools claim a big memory window and then choke when you fill it up. DeepSeek built something called compressed sparse attention. Plain words, it's like instead of reading every word of a 500-page book over and over, the AI builds a smart index of the important parts. So, at 1 million tokens, V4 Pro only needs about 27% of the brain power V3.2 needed. And it uses just 10% of the memory cache. It sounds like nerd talk, but here's why you care. Means you can give this AI your full business in one go.
See emails, your past blog posts, your full customer chat history, your whole product catalog, and it actually keeps up. It doesn't forget the start when it gets to the end. For anyone trying to use AI to run real work, not just chat with it. Pause. If you want help putting this stuff to work in your own business, come check out the AI Profit Boardroom.
We're already running coaching calls every week on how to use DeepSeek V4 in real businesses. Things like setting up DeepSeek as your free coding helper, hooking it up so it writes your sales follow-ups for you, or pointing it at your website to fix things while you sleep. Inside the Boardroom, we have 2,800 business owners testing these tools right now, swapping prompts, sharing what works, and helping each other get more clients. 30-day plan for AI automation. This is a step-by-step library for setting up free models like DeepSeek, so you don't have to figure it out alone. The link's in the description, or go to airprofitboardroom.com.
Here's where it gets really interesting for business owners. Claude Code, which is the tool a lot of people pay for to have an AI build software for them, can actually be set up to run on DeepSeek V4 in the back end. It's an open-source tool called Free Cloud Code by a developer named Ali Shera. You install it in about 15 minutes. Then your Claude Code window keeps the same look and the same commands, but every prompt goes to DeepSeek V4 Flash instead. Now, I want to be honest. Not everything is roses.
The hardest coding test called SWE Bench Pro, V4 Pro scored about 55% Claude Opus 4.7 scored 64.3%. So, when the job gets really nasty, Claude still pulls ahead.
On a math test called HMMT 2026, Claude hit 96.2% GPT 5.4 hit 97.7% and DeepSeek V4 Pro got 95.2%. So, for the hardest math, Claude and GPT lead. DeepSeek themselves admit in their tech report they're 3 to 6 months behind the very top models. But, here's the question to ask yourself. For most of what you do every day, do you need the absolute best model in the world? Do you need something that's 95% as good for less than 10% of the price? For most business owners, the answer is obvious. Let me also break down the agent side because that's where the real shift is. DeepSeek built V4 to chain tools together without breaking. So, an agent built on V4 can search the web, find a piece of info, click into a page, pull data, run a script, save the file, send a message, and check the result, all in one flow.
They tested this and the model holds up across hundreds of steps. Most other open models snap after 10 or 20 steps.
So, if you've ever tried to build an AI agent and watched it forget what it was doing halfway through, V4 is the first free model where this just works.
Because it's open, you can run it on your own server. Your data never leaves your computer. Quick thing on access.
You can chat with V4 right now free at chat.deepseek.com.
Expert mode for the smart Pro version or instant mode for the quick flash version. If you want to plug it into your own apps, the API is live, too. You can grab the model weights from Hugging Face if you want to run it on your own machine. Videos even hosting it on their cloud with their fastest chips, so you can run a million token job and get an answer in seconds. Let me address the elephant in the room. A lot of people are wondering, should I cancel my Claude or my GPT plan and just use DeepSeek? My honest take is no, not yet. The smart play is to use both. Use Claude or GPT for the high-stakes thinking jobs. Use DeepSeek for the bulk work, peak tasks, the big context jobs, the agent loops.
There's a pattern people are calling the orchestrator setup. You use a smart model like Claude Opus to plan and review the work. Then you let DeepSeek do all the typing. Anthropic themselves tested a similar setup and found it gave better results than using one model for everything. So you can actually get a better outcome and pay less. The bigger picture is what really matters. A year ago, the idea that an open free model from China would be tied with the top paid model on real coding tests was a joke. People said it would take 5 years.
Took 15 months. The gap between paid AI and free AI is closing fast. Six months, the free models get a year better. That trend doesn't stop. It speeds up. So if you're a business owner sitting on the fence about AI, waiting for it to settle down before you learn it, here's the truth. The early people who jumped on Claude code last year are now using DeepSeek V4 to do the same work for almost nothing.
Time. Build the skill. The skill carries over. The tools change every few months, but the people who know how to plug an AI into a real business win every cycle.
That's the part most people miss. The tool doesn't matter. The skill of using AI in your business does. People who learn to set up an AI agent, hand it a goal, watch it work, fix it when it breaks, and get a real outcome, those are the people who'll be running circles around their slower competitors for the next 10 years. If you want help setting this up step-by-step with people who've already done it, come join us in the AI Profit Boardroom. We just dropped a new playbook on running DeepSeek V4 as your daily work helper. You'll get four coaching calls every week where we sit down with you and walk through your DeepSeek setup, your prompts, your agent flows, all live. You can ask any question about your own business. We have 2,800 owners inside, many already using DeepSeek to handle leads, build sites, automate emails, and grow their client list. There's a prompt library built around V4. There's a member map so you can connect with people near you who run DeepSeek setups in real businesses 24/7 because someone's always online.
The link is in the description or go to ai profit boardroom.com. And if you want a free version, join the AI Success Lab.
It's a free community with 67,000 members. You'll get all the SOPs, over 100 AI use cases like this one, full video notes, and a place to swap ideas with people figuring out the same stuff.
Links are in the comments and description.
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