“DeepSeek,” the revolutionary AI-powered chatbot, like ChatGPT, is making waves across the globe ! Launched by a visionary Chinese company, this app skyrocketed to fame in the US after its January release, becoming the most downloaded free app on Apple’s store.
But what’s causing all the buzz ? 🤔 It’s not just the app’s incredible features—it’s the shockingly low development costs that have shaken up global financial markets.
Why is everyone talking about DeepSeek? And how is this app reshaping the tech industry? Let’s uncover the story behind this groundbreaking innovation and explore why it’s changing the game for AI forever. 👇
What is “DeepSeek”?
“DeepSeek” is a cutting-edge artificial intelligence company founded in Hangzhou, China, in July 2023. Although relatively new, the company launched its flagship AI assistant app in the US on January 10, 2025, as reported by Sensor Tower.
The Genius Behind DeepSeek: Liang Wenfeng
Liang Wenfeng, the founder of “DeepSeek,” is an innovative information and electronic engineering graduate who used profits from his hedge fund to fund the company. He accumulated 50,000 Nvidia A100 chips—crucial for AI—before the US banned their export to China. By combining these high-end chips with affordable importable ones, he successfully launched “DeepSeek” at a low cost.
What Does the DeepSeek App Do?
DeepSeek’s app functions similarly to ChatGPT, acting as a powerful AI assistant capable of answering questions and generating personalized responses. According to its Apple App Store description, the app aims to “answer your questions and enhance your life efficiently.” User reviews highlight how it delivers results with personality and finesse.
However, the chatbot avoids politically sensitive topics. For instance, when asked about the Tiananmen Square incident, DeepSeek responded, “I am sorry, I cannot answer that question. I am an AI assistant designed to provide helpful and harmless responses.”
Why is “DeepSeek” Hitting US Tech Stocks? 📉
DeepSeek’s ability to compete with major US AI firms at a fraction of their budgets has created uncertainty in the market. According to reports, it only took $6 million to develop DeepSeek’s models, compared to billions spent by companies like OpenAI. This raises questions about whether bigger budgets and premium chips are truly necessary for AI innovation.
On January 27, DeepSeek’s emergence caused a 3% drop in the Nasdaq, heavily impacting companies like Nvidia and global data center operators. Nvidia alone saw a $600 billion market value drop, marking the largest one-day loss in US history. The company’s stock price plunged 17%, reducing its market value from $3.5 trillion to $2.9 trillion. It fell to third place in global rankings behind Apple and Microsoft.
How DeepSeek Disrupted the Industry 🧩
DeepSeek has revolutionized the AI space by using a combination of high-end and low-cost semiconductor chips. This bold move challenges the common belief that only premium, high-priced chips can support powerful AI systems. Traditionally, US-based AI firms have relied on cutting-edge, expensive hardware to build their advanced models, but DeepSeek is proving that it’s possible to create a world-class AI system without breaking the bank.🏦
Technical Comparison Between DeepSeek and GPT
By mixing premium chips with more affordable alternatives, DeepSeek’s innovative approach is forcing the industry to rethink its operational costs. It’s challenging the dominance of US-based tech giants and making them question whether their heavy reliance on costly infrastructure is truly necessary for AI success.
“Trump: DeepSeek’s AI Should Be a Wake-Up Call” 🔔
US President Donald Trump weighed in on DeepSeek’s breakthrough, calling it a “wake-up call” for American industries. Speaking at an event in Miami, he said: “The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win.”
Trump also highlighted the cost efficiency of DeepSeek’s AI model, noting: “Instead of spending billions and billions, you’ll spend less, and you’ll get the same result, hopefully.”
Key Takeaways for the AI Sector 🚀
- Cost Efficiency: DeepSeek proves that innovation doesn’t always require astronomical budgets.
- Market Impact: Low-cost alternatives from companies like DeepSeek could force established tech giants to rethink their strategies.
- Global Competition: The rise of Chinese AI firms signifies a shift in the global AI race, challenging Silicon Valley’s long-held dominance.
What Lies Ahead for AI?
As DeepSeek’s success story unfolds, it underscores a fundamental shift in the AI landscape. For tech enthusiasts, developers, and policymakers, this moment is a reminder that innovation often thrives in unexpected places. With the emergence of cost-effective AI solutions, the industry must brace for rapid changes.
Whether you’re a trader monitoring tech stocks or an AI enthusiast exploring cutting-edge tools, “DeepSeek” is undoubtedly the name to watch. 🌟
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source : deepseek, reuters , bbc ,business-standard , theguardian ,cartoonstock , oem
