Chinese AI-powered app DeepSeek overtook ChatGPT to become the most popular free app on the App Store.
This is reported by the BBC.
According to the publication, such high demand has "challenged" the belief that the United States is the undisputed leader in AI. This raises questions about the scale of investments planned by American companies.
DeepSeek is based on the open-source DeepSeek-V3 model. Experts say that the model was developed for less than $6 million — competitors spend much more. However, other experts dispute this information.
The app comes as Washington restricts sales of advanced artificial intelligence chips to Beijing. To continue operating without imported components, Chinese developers have been sharing their experiences and experimenting with each other.
They have created AI models that require much less computing power than before. Accordingly, they are much cheaper — this could fundamentally change the industry.
In early January, DeepSeek boasted of performance on par with OpenAI products when the application is used to solve math problems, write code, etc.
The popularity of the development has already affected the markets: the share price of ASML, a Dutch chip manufacturer, has fallen by more than 10%, while shares of Siemens Energy, a manufacturer of AI-related equipment, have fallen by 21%.
Nvidia shares also fell 16% to $118.26. Back in June last year, it was the most expensive company in the world.
Singaporean tech equity advisor Wei-Sern Ling told the BBC that this “could potentially undermine the investment appeal of the entire AI supply chain”.
Instead, Wall Street banking giant Citi said that while DeepSeek is challenging the dominant positions of American companies, the challenges facing Chinese firms are hindering their development.
- DeepSeek was founded in 2023 by Liang Wenfeng, a 40-year-old computer and electronics engineering graduate. According to the BBC, he set up a storefront for Nvidia A100 chips, which are now banned from being exported to China. This may have prompted him to launch DeepSeek by combining these chips with cheaper, lower-end ones that are still available for import.
For more news and in-depth stories from Ukraine please follow us on X.