Chinese AI Startup DeepSeek Overtakes ChatGPT In US App Store – What’s Behind Its Rise?

Chinese AI startup DeepSeek has overtaken OpenAI’s ChatGPT to become the top-rated free app on Apple’s App Store in the United States, just over two weeks after its release. This remarkable achievement has raised eyebrows and stirred up discussions on the effectiveness of US export controls aimed at curbing China’s access to advanced chip technology.

DeepSeek, a startup based in Hangzhou, China, has garnered significant attention with its AI Assistant powered by the DeepSeek-V3 model. The app, which was released on January 10, has quickly climbed the ranks, outperforming many other open-source models and challenging some of the most advanced closed-source models globally. According to data from app research firm Sensor Tower, DeepSeek’s app has seen rapid traction, topping the US app charts by January 27.

The AI model, DeepSeek-V3, was reportedly trained using Nvidia’s H800 chips, a type of semiconductor that is less advanced than those targeted by US export restrictions imposed during the Biden administration, which began in 2021. Despite these controls, DeepSeek’s success suggests that China’s AI advancements might be less constrained than previously believed. The model was developed at a reported cost of under $6 million, raising doubts within the US tech community about the efficacy of the export bans in limiting China’s AI progress.

Founded in 2023, DeepSeek is one of many Chinese tech firms developing AI models, but it has gained unprecedented recognition in the US for its ability to match, or even surpass, the performance of leading US AI models. This rapid success has positioned DeepSeek as a key player in the artificial intelligence landscape, making it a symbol of China’s growing capabilities in the AI field.

Despite its impressive rise, DeepSeek remains an enigmatic company, with limited information available about its operations. However, its recent success has drawn significant attention to the company’s potential and to China’s emerging role as a major AI powerhouse, challenging the traditional dominance of US tech giants like Nvidia, OpenAI, and Google.

The rapid ascent of DeepSeek in the AI market raises important questions about the future of US-China technological competition and the limitations of US export controls. As DeepSeek continues to develop its AI models and expand its reach, the global AI race is sure to become even more complex and competitive.

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