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Chinese AI App DeepSeek Soars in Popularity, Startling Rivals

Jan 27, 2025 - wired.com
A Chinese startup, DeepSeek, has launched an AI assistant that became the most-downloaded app in Apple's US App Store, causing a significant impact on the tech industry, including a massive drop in Nvidia's market capitalization. The AI model, R1, developed by DeepSeek, is notable for its efficiency, using fewer specialized computer chips than typically required. This development challenges the perceived dominance of Western AI companies, with some industry figures likening it to a "Sputnik moment" for AI. Despite its success, DeepSeek has faced challenges, including large-scale malicious attacks, leading to temporary restrictions on new registrations.

DeepSeek's AI assistant offers three main functions: answering questions, providing internet-sourced answers, and a "DeepThink" mode that showcases its reasoning abilities. However, it has been noted for censoring sensitive topics, likely due to Chinese government regulations. Despite these limitations, DeepSeek's free offering poses a competitive threat to companies like OpenAI, which charges for access to its advanced models. Unlike OpenAI, DeepSeek has not disclosed the underlying "weights" of its models, but its innovative approach and free access could disrupt the current AI market landscape.

Key takeaways:

  • DeepSeek's AI assistant became the most-downloaded app in Apple's US App Store, causing significant disruptions in the tech industry and affecting major tech stock prices.
  • The R1 model developed by DeepSeek challenges the dominance of Western AI companies and is noted for its efficient use of resources compared to traditional AI models.
  • DeepSeek's AI assistant offers three main functions: answering questions, internet search mode, and a "DeepThink" mode with reasoning abilities, though it has limitations and censorship issues.
  • DeepSeek's free offering poses a competitive threat to paid AI services like OpenAI, which does not disclose its model's underlying "weights" or reasoning processes.
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