DeepSeek, a Chinese AI startup founded in 2023, has rapidly gained attention with its advanced language model, DeepSeek-R1, boasting over 600 billion parameters. Launched in January 2025, the DeepSeek AI chatbot quickly became the most downloaded free app on the U.S. App Store, surpassing established competitors like ChatGPT. This surge in popularity led to significant fluctuations in tech markets, notably causing Nvidia’s stock to plummet by 18%.
Despite operating under stringent U.S. export controls aimed at hindering China’s AI advancements, DeepSeek has demonstrated remarkable progress. The company developed its models with an estimated training cost of $6 million, a fraction of the $100 million reportedly spent on OpenAI’s GPT-4, and achieved this with significantly lower computational resources.
DeepSeek’s influence extends beyond mobile applications; its AI models have been integrated into various household appliances, including TVs, refrigerators, and robotic vacuum cleaners from brands like Haier, Hisense, and TCL Electronics. This integration enhances device responsiveness to complex voice commands, exemplifying the practical applications of DeepSeek’s technology in everyday life.
However, the rapid rise of DeepSeek has also sparked discussions about potential AI market bubbles. Alibaba’s chairman recently cautioned about the sustainability of AI investments, highlighting that only a few companies may deliver substantial value amidst the current AI spending surge.
In summary, DeepSeek’s emergence underscores China’s growing prowess in AI development, challenging established industry players and prompting a reevaluation of global AI strategies and investments.
