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China-based AI chatbot DeepSeek is the top free app on US App Store, overtakes ChatGPT

DeepSeek
image by Mojahid_Mottakin via Depositphotos

Just two weeks after its official release, China-based AI startup DeepSeek has zoomed past ChatGPT and become the number one free app on the US App Store. Reportedly, DeepSeek achieved this milestone in multiple countries, including the US, sparking a conversation about global competition in AI. DeepSeek is powered by the DeepSeek-V3 model and has gained a lot of popularity, according to the data from Sensor Tower, an app analytics firm.

DeepSeek claims that its DeepSeek-V3 model is a powerful AI model that outperforms the most advanced models worldwide. The Chinese AI startup behind DeepSeek was founded by hedge fund manager Liang Wenfeng in 2023, who reportedly has used only 2,048 NVIDIA H800s and less than $6 million—a relatively low figure in the AI industry—to train the model with 671 billion parameters. This is about a fraction of what OpenAI and Google spent to train their respective AI models.

This news raises a lot of questions about the effectiveness of the US government's restrictions on exporting advanced chips to China. These chips are important for training AI models used by both US's ChatGPT and Chinese DeepSeek.

DeepSeek App Store

Before Trump's government, the Biden administration in the US enforced strict rules on exporting high-tech chips to China. These controls were aimed at slowing down China's AI advancements. However, it appears that DeepSeek found a way to train its models using less advanced chips than the banned versions. However, some experts have questioned the accuracy of DeepSeek's claims about chips and the costs involved in training its AI models.

Other Chinese companies like Baidu have been developing AI models, but DeepSeek's rampant success in the US has put it apart from others. Earlier, venture capitalist Marc Andreessen took to X (formerly Twitter) and said, "DeepSeek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, a profound gift to the world."

Tech leaders in Silicon Valley are now taking note of the success of DeepSeek and its impact on the global AI stage. The startup's success has even caused tech investors to sell off their technology stocks, leading to drops in shares of big AI players like NVIDIA and Oracle.

Source: Reuters

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