DeepSeek has become a significant entity in artificial intelligence, particularly with its expansive 671 billion parameter models, DeepSeek-V3 and DeepSeek-R1, alongside their distilled versions. The guide by Sherlock Xu, updated in August 2025, aims to clarify the complexities surrounding these models, which are often a source of confusion among developers due to their rapid evolution and technical intricacies. DeepSeek-V3, introduced in December 2024, is a Mixture-of-Experts model that efficiently activates specific parameters for tasks, contrasting with DeepSeek-R1, which focuses on detailed reasoning processes. The V3 model is suitable for general-purpose tasks like content creation and translation, while R1 excels in complex reasoning, such as mathematical problem-solving and coding. Recent iterations like DeepSeek-V3-0324 and DeepSeek-R1-0528 further enhance these capabilities, offering improved reasoning and reduced hallucination rates. To make these powerful models more accessible, DeepSeek has also released distilled versions, which retain reasoning capabilities but require less computational power, thus broadening their practical applications. The open-source nature of these models has sparked community-driven innovations, allowing researchers to expand and adapt them creatively, with deployment options available through platforms like BentoML, emphasizing the balance between accessibility and performance in AI applications.