DeepSeek’s AI assistant has become the top free app on the U.S. Apple App Store, challenging established AI models with its efficient development approach.
Key Points at a Glance:
- DeepSeek’s AI assistant has overtaken OpenAI’s ChatGPT as the most downloaded free app on the U.S. Apple App Store.
- The company’s R1 reasoning model matches OpenAI’s o1 in performance but was developed at a significantly lower cost.
- DeepSeek trained its V3 model using only about 2,000 Nvidia chips, compared to the 16,000 typically required by leading models.
- This development has led to a 12% drop in Nvidia’s share price, raising questions about the heavy investments in AI by major companies.
In a remarkable ascent, Chinese artificial intelligence startup DeepSeek has seen its AI assistant become the top free application on the U.S. Apple App Store, surpassing OpenAI’s ChatGPT. This surge in popularity follows the release of DeepSeek’s R1 reasoning model on January 20, 2025, which reportedly matches OpenAI’s o1 in performance but was developed at a fraction of the cost.
DeepSeek’s V3 model, launched in December 2024, boasts performance on par with major models like GPT-4o and Claude 3.5 Sonnet, yet it was developed for under $6 million. Notably, DeepSeek achieved this by utilizing approximately 2,000 Nvidia chips, a stark contrast to the 16,000 or more typically required by leading AI models. This efficient approach challenges the prevailing notion that advanced AI development necessitates substantial computational resources and investment.
The financial markets have responded swiftly to DeepSeek’s advancements. Nvidia’s share price experienced a 12% decline amid concerns about the substantial investments in AI infrastructure by companies like Nvidia, Microsoft, and others. DeepSeek’s success has prompted a reevaluation of the capital-intensive strategies employed by established AI firms.
Founded in 2023 in Hangzhou, DeepSeek has rapidly emerged as a formidable competitor in the AI landscape. The company’s open-source approach and efficient use of resources have not only disrupted the market but also sparked discussions about the effectiveness of U.S. export restrictions on advanced AI chips to China. DeepSeek’s use of Nvidia’s H800 chips, which are subject to U.S. export controls, underscores the startup’s innovative strategies in navigating these limitations.
DeepSeek’s rise signifies a pivotal moment in the global AI race, highlighting the potential for innovative approaches to overcome resource constraints. As the company continues to develop and refine its models, the broader implications for the AI industry and international competition remain to be seen.
