Chinese startup DeepSeek’s artificial intelligence (AI) Assistant on Monday overtook rival ChatGPT to become the top-rated free application available on Apple’s App Store in the United States.
Powered by the DeepSeek-V3 model, which its creators say “tops the leaderboard among open-source models and rivals the most advanced closed-source models globally”, the artificial intelligence application has surged in popularity among US users since it was released on January 10, according to app data research firm Sensor Tower.
Chinese artificial intelligence startup DeepSeek has shocked the global tech industry by unveiling its R1 model, a state-of-the-art AI system built on a modest $5.6 million budget.
The move has ignited debates in Silicon Valley about whether resource-rich US companies can maintain their edge.
DeepSeek, founded by billionaire hedge fund manager Liang Wenfeng, released detailed technical insights about R1 on Monday.
The model boasts 671 billion parameters and was developed using just 2,048 Nvidia H800 GPUs—showcasing ingenuity in resource allocation.
US firms like OpenAI and Google DeepMind pioneered reasoning AI models, but their methods remain proprietary.
In contrast, DeepSeek’s open publication of its techniques has positioned the company as a disruptor, with industry insiders describing it as “operating like the early days of DeepMind.”
Liang’s unorthodox journey from hedge fund manager to AI innovator has captured China’s imagination. His team’s expertise in maximising computing efficiency, honed during years of stock trading at his fund High-Flyer, allowed them to build the R1 model under strict resource constraints.
“DeepSeek’s engineers have shown they can unlock the full potential of older GPUs, a necessity after US export bans on cutting-edge chips,” said an AI researcher close to the company.
DeepSeek’s identity as a purely Chinese enterprise, staffed by local PhDs from top universities like Peking and Tsinghua, has further bolstered its standing at home. Liang’s insistence on avoiding overseas hires has added to the firm’s appeal as a symbol of national pride.
Despite its achievements, questions linger about DeepSeek’s ability to sustain its competitive edge.
While the company remains focused on research rather than commercialisation, rivals in the US are investing billions in advanced AI clusters.
OpenAI, for example, recently announced a $100 billion venture with SoftBank to boost its infrastructure.
DeepSeek’s R1 model release highlights the growing competition between China and the US in artificial intelligence, underscoring how limited resources can still yield innovative breakthroughs.
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