Chinese AI startup DeepSeek has surpassed OpenAI’s ChatGPT, claiming the top spot as the most downloaded free app on Apple’s App Store in the U.S.
Achieving this feat just days after its launch on January 10, DeepSeek’s AI assistant has disrupted the generative AI landscape and raised concerns about the effectiveness of U.S. export controls designed to limit China’s technological growth.
DeepSeek’s Rise to the Top
DeepSeek, powered by the company’s R1 model, quickly gained popularity among U.S. users, reaching No. 1 on the App Store’s Top Free Apps chart by January 20, according to app analytics firm Sensor Tower. The startup, led by Liang Wenfeng, a former hedge fund manager, has accomplished this despite having fewer resources compared to major U.S. companies like OpenAI, Google, and Meta. DeepSeek trained its cutting-edge DeepSeek-V3 model for under $6 million using around 2,000 Nvidia H800 chips.
In contrast, U.S. companies have spent billions acquiring Nvidia’s H100 chips for training their large language models (LLMs), while export restrictions prevent Chinese firms from accessing them. Despite this, DeepSeek’s R1 model has outperformed some of the best AI models globally, according to its developers.
Impact on U.S. Export Controls
The success of DeepSeek has sparked debate about the effectiveness of U.S. export sanctions designed to prevent China’s access to advanced AI technologies. Since 2021, the Biden administration has imposed restrictions on high-performance chips to limit Chinese firms’ ability to train AI models. However, DeepSeek’s innovative use of less powerful H800 chips has raised concerns among U.S. tech leaders.
A December research paper by DeepSeek highlighted its efficient approach to training AI, achieving performance benchmarks comparable to those of U.S.-developed systems. A U.S. tech insider remarked, “DeepSeek’s ability to achieve this level of sophistication at a fraction of the cost reveals a potential gap in the export control framework.”
Founded in 2023, DeepSeek is a recent player in the AI sector but has quickly gained recognition, especially in Silicon Valley. Its DeepSeek-V3 model has been praised for its versatility and efficiency, rivaling some of the most advanced AI systems globally.
ChatGPT Falls to Second Place
Meanwhile, OpenAI’s ChatGPT, which dominated the App Store rankings for a long time, has dropped to second place. DeepSeek’s rise highlights growing competition from new players in the AI space.
Despite U.S. investments like OpenAI’s partnership with the government, which committed $500 billion to AI infrastructure, DeepSeek’s success suggests that innovation can be achieved with fewer resources. This development underscores a shift in the AI landscape, as Chinese startups continue to make strides in the sector despite geopolitical and technological hurdles.
DeepSeek’s rapid rise challenges established assumptions about U.S. dominance in the AI space, and its success may prompt U.S. policymakers to reassess their strategies to stay competitive. As this new player from China gains attention, it serves as a reminder that groundbreaking technology can come from unexpected sources, reshaping global views on innovation.
