DeepSeek, a Chinese AI startup, is making waves in Silicon Valley with its open-source chatbot that rivals the capabilities of ChatGPT at a fraction of the cost. The app, released earlier this month, has been downloaded 1.6 million times in the US and topped app stores in multiple countries. Experts note that while DeepSeek's technology is still behind OpenAI and Google, its rapid development and performance using fewer, less powerful chips make it a significant competitor.
Chinese AI startup DeepSeek is gaining attention in Silicon Valley as the company appears to be nearly matching the capability of chatbots like OpenAI's ChatGPT, but at a fraction of the development cost. DeepSeek has surged in popularity in global app stores since the app was released earlier this month, having been downloaded1.6 million times by Jan. 25 in the U.S. and ranking No. 1 in iPhone app stores in Australia, Canada, China , Singapore, the U.S. and the U.K.
The new potential of open source AI development caused waves in the stock market, causing some traders to sell off shares in companies like Nvidia, which develops the computer chips typically necessary for brute-force AI training. Experts told the Journal that DeepSeek’s technology is still behind OpenAI and Google. However, it is a close rival despite using fewer and less-advanced chips, and in some cases skipping steps that U.S. developers consider essential.
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