DeepSeek has quickly risen to the top of downloads in Apple's App Store and the Chinese company's quick growth in the artificial intelligence market has sent share prices of the biggest tech companies in the United States sharply lower.
The DeepSeek AI Assistant was developed by Hangzhou DeepSeek Artificial Intelligence Co. which was founded by Liang Wenfeng. It is entirely funded by Chinese hedge fund High-Flyer.
The company launched the latest version of its chatbot in December. It used significantly fewer resources than ones designed by U.S. tech giants.
DeepSeek's development of a powerful system for much cheaper than bigger companies shows how far Chinese AI firms have progressed, the South China Morning Post reported.
The Deep Seek AI Assistant surpassed ChatGPT on Monday as the most downloaded free app on the iOS App Store in the United States.
The app's competitive performance is challenging the global dominance of American AI models, according to Reuters.
AI chipmaker Nvida's stock price dropped more than 10% on Monday morning as the industry leader's investors were spooked by the emergence of the lower-cost competitor.
It was unclear if DeepSeek would face any regulatory issues as it grows in popularity.
The United States passed a law banning the Chinese ownership of the popular TikTok social media app but President Trump has delayed enforcement of the law.
