Chinese startup DeepSeek threatens ChatGPT’s dominance of AI sector

Deepseek's logo is seen in this illustration taken January 27, 2025.

Chinese artificial intelligence start-up DeepSeek has overtaken rivals including OpenAI's ChatGPT to become the most downloaded free application in the United States. The results sent a shock wave through the AI sector worldwide and cast doubt on whether US technology firms could sustain their leadership position.

Chinese startup DeepSeek's launch of its latest AI models, which it says are on a par or better than industry-leading models in the United States at a fraction of the cost, is threatening to upset the technology world order.

The company has attracted attention in global AI circles after writing in a paper last month that the training of DeepSeek-V3 required less than $6 million worth of computing power from Nvidia H800 chips.

DeepSeek's AI Assistant, powered by DeepSeek-V3, has overtaken rival ChatGPT to become the top-rated free application available on Apple's App Store in the United States.

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This has raised doubts about the reasoning behind some U.S. tech companies' decision to pledge billions of dollars in AI investment and shares of several big tech players, including Nvidia, have been hit.

Below are some facts about the company shaking up the AI sector worldwide.

Why is DeepSeek causing a stir?

But some have publicly expressed scepticism about DeepSeek's success story.

(Reuters)


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