A new AI chatbot from Chinese startup DeepSeek has taken the top spot on Apple's App Store, challenging OpenAI's ChatGPT dominance. DeepSeek claims its open-source models can be trained at a fraction of the cost, using significantly fewer computer chips. This has triggered a market shakeup, with Nvidia's share price plunging. The company's claims raise questions about the compute-intensive approach favored by leading AI companies.
A chatbot developed by Chinese artificial intelligence startup DeepSeek has surged to the top of Apple's App Store rankings in the US this week, surpassing OpenAI's ChatGPT as the most downloaded free application. The AI assistant, bearing the company's name, is driven by DeepSeek's open-source models, which the company asserts can be trained at a significantly reduced cost and utilizing a smaller number of computer chips compared to the leading global models.
This claim has sent ripples through financial markets, causing Nvidia's share price to plummet over 12 percent in pre-market trading.Downloads for the DeepSeek app skyrocketed shortly after the company unveiled its new R1 reasoning model on January 20th. Designed to tackle complex problems, R1 is reported to perform comparably to OpenAI's o1 on certain benchmark tests. R1 is built upon DeepSeek's V3 Large Language Model (LLM) released in December, which the company claims is on par with OpenAI's GPT-4 and Anthropic's Claude 3.5 Sonnet, while costing less than $6 million to develop. In stark contrast, OpenAI CEO Sam Altman has stated that GPT-4's training expenses exceeded $100 million. DeepSeek further asserts that it required only about 2,000 specialized chips from Nvidia to train V3, a significantly lower number compared to the 16,000 or more typically needed to train leading models, according to the New York Times. These unverified claims are prompting developers and investors to reconsider the compute-intensive approach embraced by the world's leading AI companies. If proven accurate, it suggests that DeepSeek engineers found ingenious solutions in the face of trade restrictions intended to maintain US dominance in the AI sector. Nvidia, Microsoft, OpenAI, and Meta are collectively pouring billions into AI data centers — a staggering $500 billion for the Stargate Project, with an estimated $100 billion allocated to Nvidia. Investors and analysts are now questioning the wisdom of these investments, as Nvidia, Microsoft, and other companies heavily invested in preserving the current AI landscape are experiencing downward trends in pre-market trading
Artificial Intelligence Chatbots Deepseek Openai Chatgpt Open-Source AI Models Nvidia Market Turmoil
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