
In a surprising turn of events, Chinese AI startup DeepSeek has overtaken ChatGPT as the most downloaded free app on Apple’s U.S. App Store within a week of its launch. The company’s AI Assistant, powered by its latest R1 reasoning model, is making waves in the tech world with its performance and affordability.
Unlike its competitors, DeepSeek R1 operates efficiently on modest hardware, offering robust capabilities in coding, mathematical problem-solving, and logical reasoning. Its open-source design has allowed developers worldwide to access and build upon the model. What truly sets it apart is its cost-efficiency—developed for just $5.6 million, a fraction of the budget typically allocated by Western tech giants.
The app’s rapid rise is shaking the tech industry. Nvidia shares dipped by 17% amid fears of reduced demand for its high-priced AI chips, wiping out over $600 billion in market value. Microsoft and Meta also saw their stocks decline as DeepSeek’s disruptive entry challenged the billion-dollar AI investments dominating the industry.
While the app faces challenges, including a large-scale DDoS attack, its impact is undeniable. Dubbed “AI’s Sputnik moment” by industry experts, DeepSeek has proven that cutting-edge AI can be developed at a fraction of traditional costs, forcing the AI sector to rethink its strategies.