An AI assistant made by a largely anonymous Chinese company has become the most popular free application on iPhones.
DeepSeek, made by a Chinese startup, overtook OpenAI’s ChatGPT to become the top-rated free app on Apple’s App Store in the US.
The app’s AI features have been praised for being both smarter and more efficient than those made by famous US companies such as OpenAI. But the popularity has also led to troubling questions in Silicon Valley, where some have suggested that the popularity and power of the assistant could undermine its vast artificial intelligence industry.
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 U.S. users since it was released on Jan. 10, according to app data research firm Sensor Tower.
The milestone highlights how DeepSeek has left a deep impression on Silicon Valley, upending widely held views about US primacy in AI and the effectiveness of Washington’s export controls targeting China’s advanced chip and AI capabilities.
AI models from ChatGPT to DeepSeek require advanced chips to power their training. The Biden administration has since 2021 widened the scope of bans designed to stop these chips from being exported to China and used to train Chinese firms’ AI models.
However, DeepSeek researchers wrote in a paper last month that the DeepSeek-V3 used Nvidia’s H800 chips for training, spending less than $6 million.
Although this detail has since been disputed, the claim that the chips used were less powerful than the most advanced Nvidia products Washington has sought to keep out of China, as well as the relatively cheap training costs, has prompted U.S. tech executives to question the effectiveness of tech export controls.
Little is known about the company behind DeepSeek, a small Hangzhou-based startup founded in 2023, when search engine giant Baidu released the first Chinese AI large-language model.
Since then, dozens of Chinese tech companies large and small have released their own AI models, but DeepSeek is the first to be praised by the U.S. tech industry as matching or even surpassing the performance of cutting-edge U.S. models.
Additional reporting by agencies
