The Chinese Artificial Intelligence (AI) app Deepseety has left chatgpt and other competitors to become the limited free app in Apple’s free app store in the US, UK and China.
The app has grown in popularity since its launch in January, casting widespread belief that America is the undisputed leader of the AI ​​industry.
It is powered by an open source deep-v3 model, which the researchers say is less than $6m – less than the millions spent by competitors.
But this claim has been made by others in the AI ​​space.
After the removal of Deepseek-R1 was launched earlier this month the company boasts “Working on PAR with” One of Chatgpt Maker Openai latest models – where it is used for tasks such as calculations, coding and natural language consultation.
Silicon Valley Venture Capitalist and Donald Trump Advisor Marc Andreessen described the Deepseek-R1 as “Ai’s Sputnik Moment”referring to the Soviet Union’s first Earth Satellite in 1957.
Advanced chips are capable of training AI models such as chatgpt and deepseek.
But starting in 2021 the US Government has increased its restrictions on advanced chips sold in China.
In order to continue its work without a strong supply of advanced advanced chips, Chinese AI developers have shared their work with each other and are trying new methods in technology.
This has led to AI models that require more computing power than ever before. It also means that they are more expensive than previously thought, which has the potential to improve the industry.
Shares in US-based AI-related companies, such as Nvidia, Microsoft and Meta were lower on Monday morning – and the development knocked European prices.
ASML, the maker of chip equipment, saw its price fall by more than 10% while participating in Nokia Energy, which makes hardware related to AI, posted by 21%.
“This idea of ​​a lower Chinese version has never been in the forefront, so it took the market a little bit by surprise,” said Fiona Cincotta, senior market analyst, senior market analyst at City Index.
“So if you can make this expensive AI model yourself, then that’s going to improve the profitability of competitors, especially given the amount they’re putting in expensive money.”
And Singapore-based Equity Advisor Vey-Sern Ling told the BBC that it is possible to “release the case for investing in the entire AI Supply Chain”.
But the Wall Street banking giant warned that while Deentiseek could challenge the top positions of American companies such as OpenAI, the challenges faced by the Chinese could hamper their growth.
“We estimate that in a more restrictive environment, US chips’ advanced chips are profitable,” said its analyst in the report.
Last week, the Consortium of US Tech Firms and foreign investors announced Stargate Project, The company is putting $500bn into AI infrastructure in Texas.
The company was founded in 2023 by Liang Wenfeng in Hangzhou, a city in southeast China.
The 40-year-old, who is gifted with electronics engineering, also founded a deep-funding target fund.
He for reporting He built a shop for NVIDA A100 Chips, now banned from exporting to China. Experts believe this collection – which some estimates put at 50,000 – led him to launch Deepseek, by pairing these cheap, low-cost chips that are still available for import.
Mr Liang was recently seen at a meeting between industry experts and Chinese Premier Li Qiang.
In July 2024 Interview with China AcademyMr Liang said he was surprised by the response to the previous version of his AI model.
“We didn’t expect prices to be such a serious issue,” he said.
“We’re just going at our own pace, calculating costs, and pricing appropriately.”
Additional reporting by Joao Da Silva and Delbail Jordan.
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