Wall Street experienced significant turmoil on January 28, 2025, following the rapid rise of China’s DeepSeek AI, which has surpassed OpenAI’s ChatGPT as the most downloaded free app on Apple’s US App Store. Former President Donald Trump labeled this development a “wake-up call” for Silicon Valley, emphasizing the need for the US to maintain its technological leadership amid rising competition from China[5][7].
DeepSeek AI Overview
DeepSeek is a Chinese artificial intelligence startup founded in 2023 by Liang Wenfeng. The company has gained attention for its innovative approach to developing large language models (LLMs) at a fraction of the cost typically associated with such technologies. Its flagship model, DeepSeek R1, was launched on January 20, 2025, and is reported to perform comparably to its US counterparts while being significantly cheaper to produce[4][6][8]. In the AI developer’s own words:
DeepSeek V3 represents a groundbreaking achievement in AI technology, featuring an impressive 685 billion parameters and outperforming leading models like Claude 3.5 Sonnet, GPT-4, and other major competitors. This powerful model combines advanced Mixture-of-Experts (MoE) architecture with exceptional processing speed of 60 tokens per second.
Cost Efficiency and Market Impact
DeepSeek claims that it developed the R1 model with only about $6 million in computing power, which is approximately ten times less than Meta’s recent AI investments. This cost efficiency has raised concerns among US tech giants about the sustainability of their current investment strategies in AI, especially as they face competition from a company that can deliver similar capabilities at a lower price point[2][4][6]. Following the news of DeepSeek’s success, shares of Nvidia dropped significantly—by as much as 18%—reflecting investor anxiety over the implications for the AI market[3][5].
Reactions from Industry Leaders
Trump’s comments highlighted a broader sentiment within the US tech community. He suggested that DeepSeek’s advancements could ultimately benefit American companies by encouraging them to find more economical solutions for AI development[7]. Sam Altman, CEO of OpenAI, acknowledged DeepSeek’s R1 as an impressive model and expressed enthusiasm about increased competition in the AI space[5]. Tech investor Marc Andreessen referred to DeepSeek’s emergence as “AI’s Sputnik moment,” indicating its potential to shift the dynamics of global technological competition[5][6].
Regulatory Context
The rise of DeepSeek occurs against a backdrop of US government efforts to restrict Chinese access to advanced semiconductor technologies. Despite these restrictions, DeepSeek has managed to innovate effectively under constraints, prompting discussions about how such limitations might drive creativity and efficiency in tech development[4][8]. David Sacks, an advisor to Trump and prominent tech investor, argued that reversing previous executive orders on AI safety standards could be beneficial for US companies competing against Chinese firms like DeepSeek[5].
How Does it Compare?
While DeepSeek provides essential functionalities similar to ChatGPT, it lacks some advanced features such as image generation and customizable tools that enhance user experience.
How Can I Access It? I Don’t Like Apps
To access DeepSeek, users can visit the official website at [deepseekv3.com/chat]. This site allows users to experience the capabilities of DeepSeek’s AI models for free, without the need for registration. Additionally, the main website for DeepSeek can be found at [deepseek.com], which provides more information about their services and products.
Conclusion
DeepSeek’s rapid ascent in the AI landscape signals a significant shift in global tech dynamics. As it challenges established players like OpenAI and Google with its cost-effective solutions, it raises critical questions about the future of AI investment strategies in the United States and the broader implications for technological leadership on the world stage.
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[1] https://economictimes.indiatimes.com/magazines/panache/deepseek-or-chatgpt-a-price-to-performance-comparison-what-you-need-to-know/articleshow/117636306.cms
[2] https://www.standard.co.uk/news/tech/deepseek-chatgpt-compare-china-ai-iphone-app-b1207327.html
[3] https://www.businessinsider.com/deepseek-vs-chatgpt-ai-chatbot-comparison-openai-2025-1
[4] https://www.china-briefing.com/news/chinas-deepseek-and-its-open-source-ai-models/
[5] https://www.bbc.com/news/articles/c4gpq01rvd4o
[6] https://brisktechsol.com/deepseek-ai/
[7] https://www.france24.com/en/americas/20250128-trump-cautions-of-wake-up-call-in-deepseek-aftermath
[8] https://www.mixvale.com.br/2025/01/28/deepseek-how-to-use-and-access-the-revolutionary-chinese-artificial-intelligence-in-2025/
[9] https://www.politico.eu/article/donald-trump-china-deepseek-wake-up-call-for-us-tech/
[10] https://www.northeasternchronicle.in/news/chinas-deepseek-ai-tech-2025/
[11] https://www.businesstoday.in/technology/news/story/deepseek-vs-chatgpt-which-ai-chatbot-should-you-use-462152-2025-01-27
[12] https://www.yahoo.com/news/trump-says-chinas-deepseek-ai-032256746.html
[13] https://www.the-independent.com/tech/deepseek-ai-r1-nvidia-stock-price-trump-live-updates-b2687598.html
[14] https://www.nytimes.com/2025/01/28/business/economy/deepseek-china-us-chip-controls.html
[15] https://en.wikipedia.org/wiki/DeepSeek_AI
[16] https://www.deepseekv3.com/en/chat
[17] https://www.deepseek.com
[18] https://deepseek.ai
[19] https://github.com/deepseek-ai/DeepSeek-V3/labels
[20] https://www.reuters.com/technology/artificial-intelligence/white-house-evaluates-china-ai-app-deepseeks-affect-national-security-official-2025-01-28/