'everyone Can Profit From It': What Is Deepseek? China's 'cheap' To Make Ai Chatbot Climbs To The Top Of Apple, Google U.s. App Stores

The Chinese startup DeepSeek released its flagship AI exemplary R1 connected January 20, astonishing Silicon Valley pinch nan model's precocious capabilities. R1 matched aliases surpassed nan functionality of AI released by OpenAI, Google, and Meta — connected a overmuch smaller money and without nan latest AI chips.

Over nan past week, nan DeepSeek app has proven celebrated pinch nan public. It surged past ChatGPT successful popularity, reaching No. 1 connected nan U.S. Apple app shop and incorrect nan apical free Android apps connected nan Google Play Store astatine nan clip of publication.

DeepSeek's R1 merchandise has prompted questions astir whether nan billions of dollars of AI spending successful nan past less years was worthy it — and challenged nan conception that nan U.S. is nan world's leader successful AI, per BBC.

Related: What Is Stargate? OpenAI, Oracle, Softbank, and President Trump Team Up for $500B AI Infrastructure Initiative.

DeepSeek's AI arrives arsenic nan U.S. looks to ramp up spending connected AI. Last week, President Donald Trump announced a associated task pinch OpenAI, Oracle, and Softbank called Stargate that commits up to $500 cardinal complete nan adjacent 4 years to accusation centers and different AI infrastructure.

What is DeepSeek?

DeepSeek is simply a Chinese AI startup that creates unfastened AI models—so immoderate developer tin entree and build connected nan technology.

DeepSeek is different from ChatGPT because it states its chain-of-thought reasoning earlier giving a consequence to a prompt. Apple App Store and Google Play Store reviews praised that level of transparency, per Bloomberg.

It is free to download and use, though it does require users to mobility up earlier they tin entree nan AI.

DeepSeek AI. Photographer: Andrey Rudakov/Bloomberg via Getty Images

How overmuch did DeepSeek costs to develop?

In a insubstantial released past month, DeepSeek researchers stated that they built and trained nan AI exemplary for nether $6 cardinal successful only 2 months.

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They stated that they utilized astir 2,000 Nvidia H800 chips, which Nvidia tailored exclusively for China pinch small accusation proscription rates, aliases slowed-down speeds erstwhile compared to nan H100 chips utilized by U.S. companies. In October, nan U.S. Department of Commerce banned nan discarded of nan H800 spot to China pinch nan extremity of preventing entree to chips that could constituent AI breakthroughs, peculiarly for taxable purposes.

In contrast, Dario Amodei, nan CEO of U.S AI startup Anthropic, said successful July that it takes $100 cardinal to train AI — and location are models coming that costs personification to $1 cardinal to train.

So really did DeepSeek propulsion up of nan title pinch little resources? Meta's main AI intelligence Yann LeCun stated successful a Threads station connected Saturday that DeepSeek had "profited from unfastened investigation and unfastened source."

Related: Meta's AI Chief Is successful nan Middle of a Public Clash With Elon Musk: 'Secrecy Hampers Progress'

"They came up pinch caller ideas and built them connected apical of different people's work," LeCun stated. "Because their activity is published and unfastened source, everyone tin profit from it."

Why is DeepSeek truthful popular?

DeepSeek is free and offers top-of-the-line performance. Last week, nan technological diary Nature published an article titled, "China's cheap, unfastened AI exemplary DeepSeek thrills scientists." The article showed that R1's performances connected definite chemistry, math, and coding tasks were connected par pinch 1 of OpenAI's astir precocious AI models, nan o1 exemplary OpenAI released successful September.

In summation to precocious performance, R1 is open-weight, truthful researchers tin study, reuse, and build connected it. It isn't considered afloat unfastened guidelines because DeepSeek hasn't made its training accusation public.

The AI exemplary has too received stellar reviews. Investor Marc Andreessen called it "one of nan astir astonishing and awesome breakthroughs" he had "ever seen" successful a Friday position connected X while Microsoft CEO Satya Nadella called it "super impressive" astatine past week's World Economic Forum successful Switzerland.

Deepseek R1 is 1 of nan astir astonishing and awesome breakthroughs I've ever seen — and arsenic unfastened source, a profound gift to nan world. ??

— Marc Andreessen ?? (@pmarca) January 24, 2025

What are DeepSeek's effects connected U.S. tech stocks?

Nvidia shares fell by 13% aft nan opening doorbell connected Monday, wiping $465 cardinal from nan AI chipmaker's marketplace cap. It was nan biggest driblet successful worthy successful U.S. banal marketplace history, per Bloomberg.

According to NBC News, Microsoft and Alphabet fell 4% each while Meta fell astir 2%.

NBC News too notes that nan Nasdaq Composite fell by 3.4% astatine nan opening bell, while nan Dow fell 180 points and nan S&P 500 fell astir 2%.

Related: Why One Prominent Investor, 'Britain's Warren Buffett,' Is Staying Away From Nvidia Stock