Chinese artificial intelligence (AI) startup “DeepSeek” has surpassed OpenAI’s ChatGPT to become the number one free app on the US Apple App Store.
This milestone, achieved just days after the company’s AI assistant launched on January 10, has not only shaken up the competitive landscape of generative AI but also raised questions about the effectiveness of US export controls aimed at curbing China’s technological advancements.
DeepSeek’s Rise to Prominence:
The DeepSeek AI assistant, powered by the company’s flagship R1 model, quickly gained popularity among US users. By January 20, the app had climbed to the top spot on the App Store’s Top Free Apps chart, highlighting its rapid adoption.
Led by Liang Wenfeng, a former hedge fund manager, DeepSeek’s success is especially significant considering its limited resources compared to US tech giants like OpenAI, Google, and Meta. The Hangzhou-based startup trained its cutting-edge DeepSeek-V3 model for under $6 million using around 2,000 Nvidia H800 chips.
Implications for US Export Controls:
This success has ignited debate over the effectiveness of US sanctions aimed at restricting China’s access to advanced AI technologies. Since 2021, the Biden administration has expanded export bans on high-performance chips to prevent Chinese firms from training AI models.
However, DeepSeek’s ability to innovate using less powerful H800 chips has raised concerns among US tech executives, highlighting a potential loophole in the export control framework.
ChatGPT’s Shift in Position:
Meanwhile, OpenAI’s ChatGPT, which had long dominated App Store rankings, has now fallen to second place. In 2021, OpenAI partnered with the US government to invest $500 billion in AI infrastructure, but DeepSeek’s unexpected success has shown that similar achievements can be made with significantly fewer resources.
Changing Dynamics in Global Innovation:
DeepSeek’s rise challenges the long-standing assumptions about US dominance in AI and underscores the continued innovation from Chinese startups despite geopolitical and technological barriers. This success serves as a reminder for US tech firms to refocus on innovation.
