DeepSeek, a Chinese AI startup, has made global headlines after its new model, DeepSeek R1, became the most-downloaded free app on Apple’s App Store. This rapid rise has sparked major reactions worldwide, especially in the tech industry.
Why DeepSeek is Making Waves
Launched in January 2025, DeepSeek R1 claims to rival the capabilities of ChatGPT, while being much cheaper to develop. It cost just $6 million to train, compared to over $100 million for models like GPT-4. This cost efficiency, combined with strong performance in tasks like mathematics and coding, has captured global attention.
DeepSeek’s popularity even caused a dip in US tech stocks, with chip giant Nvidia losing billions in market value. Experts say DeepSeek has proven that top AI models don’t need massive budgets or the most advanced chips to succeed.
Who is Behind DeepSeek?
DeepSeek was founded in December 2023 by Liang Wenfeng, a graduate of Zhejiang University with a background in finance and technology. Liang also runs High-Flyer, a hedge fund that uses AI for quantitative trading. His goal is to position China as a leader in AI, not just a follower of US innovations.
Global Concerns and Controversies
While DeepSeek has impressed many, it has also raised concerns. Countries like Australia and Italy have restricted the app due to national security and data privacy issues. DeepSeek stores data on China-based servers, leading to questions about how personal information is handled.
In China, however, DeepSeek’s success is celebrated as a symbol of the country’s growing tech power. State media highlighted how the app has disrupted US markets, showcasing China’s innovation strength.
What’s Next?
DeepSeek’s rise is a wake-up call for the global AI industry. It challenges the belief that only companies with huge budgets can lead in AI. As DeepSeek continues to grow, the world will be watching how it shapes the future of technology.