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Thursday, February 13, 2025  
14 Shaban 1446  

Your guide to understanding DeepSeek, which has beaten ChatGPT

Success of the app raises questions about the future of AI development
Photo via Reuters
Photo via Reuters

An AI-powered chatbot from the Chinese tech company of the same name, DeepSeek, has become the most downloaded free app on Apple’s US store since its release earlier this month.

The company, founded in Hangzhou in mid-2023, claims that its latest AI models the industry-leading US-based services, such as OpenAI’s ChatGPT, but at a significantly lower cost.

The company’s widely used AI assistant app wasn’t available in the US until January 10, according to Sensor Tower.

DeepSeek ’s breakthrough AI assistant was developed with just $6 million in funding, a stark contrast to the billions spent by American firms, BBC News reported.

Marc Andreessen, a prominent Silicon Valley venture capitalist, praised the Chinese AI company, calling it “one of the most amazing and impressive breakthroughs” in artificial intelligence.

The success of the app has raised questions about the future of AI development, especially in the US, where companies like Nvidia and other chipmakers are feeling the pressure.

Users have praised the chatbot for its ability to answer questions and assist with tasks, with some noting its conversational style.

DeepSeek’s founder, Liang Wenfeng, leveraged his experience in the tech sector to launch the company. A graduate in information and electronic engineering, Wenfeng reportedly stockpiled a collection of Nvidia A100 chips before they were banned from export to China.

These chips, combined with lower-cost alternatives, helped power the company’s breakthrough AI models.

The app’s success has caused significant disruption in the stock market, particularly for US-based companies. Nvidia, which produces the high-end semiconductors that fuel many AI models, saw its market value drop by nearly $600 billion on January 27, following concerns about the competition from DeepSeek ’s more affordable technology.

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This marks the largest single-day market loss for any company in US history, pushing Nvidia down from its position as the most valuable company in the world.

Experts say that DeepSeek’s ability to deliver high-performance AI with lower-cost chips challenges the notion that only expensive, top-tier semiconductors can drive progress in artificial intelligence.

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United States

Artificial Intelligence

Apple

Chinese

Chatbot

DeepSeek