The artificial intelligence or AI-powered chatbot developed by the Chinese company Deepseek has topped the list of the most downloaded free apps in the Apple Store within a few days of its release in the US market.
Deepseek
The app's sudden popularity and Deepseek's cost differential with US AI companies has brought about a big change in the tech market.
Silicon Valley entrepreneur Marc Andreessen describes Deepseek as 'one of the breakthrough inventions' of the AI world.
Deepseek's parent company says their new AI model is the market-leading model on par with US-based ChatGPT. However, compared to ChatGPT, the cost of building their AI model is many times less.
The app's research team says it cost them $6 million to develop the app, which pales in comparison to the hundreds of millions of dollars spent by US-based AI companies.
What is Deepseek?
Dipsic is a Chinese artificial intelligence company founded in the southeastern Chinese city of Hangzhou.
The company was established in July 2023. However, their popular AI assistant app was released in the US market on January 10 this year.
Dipsik has become popular for its powerful AI assistant tool
Who is Liang Wenfeng, the founder of Deepseek?
Liang Wenfeng is the co-founder of Dipsik, who created Dipsik using money from a hedge fund he founded.
Liang Wenfeng, a forty-year-old information and technology graduate, is said to have been stockpiling a large number of A-100 chips at US firm Nvidia. Such chips are currently banned from being exported to China.
According to experts, the estimated 50,000 chips in his collection helped him establish Deepseek. He is believed to have developed Deepseek by attaching relatively inexpensive chips to such chips, which are still exported to China.
Who is using Deepseek?
The company's AI app is available for free download from Apple's App Store and the Deepsy website.
This free app has become the top downloaded app on the Apple Store in no time. However, some people have also reported that they are having trouble signing up for the app.
It is also listed as the highest rated free app on Apple's App Store in the US.
How does this app work?
Deepseek has become popular for its powerful AI assistant tool. Its operation is similar to chatgpt.
It's built to 'enhance your productivity and answer your questions,' as described in the App Store.
While rating the app, users commented that the app 'makes your writing more serious.'
However, this chatbot may be unable to answer certain questions. For example, when the app was asked by the BBC what happened in Tiananmen Square on June 4, 1989, Deepseek replied: "I'm sorry, I can't answer that question. I'm an AI assistant and I'm made to give answers that are helpful." and harmless."
In other words, since the app is owned by a Chinese organization, this AI chatbot may not be 100% accurate in answering questions on topics that China considers politically sensitive.
The worst affected is the US-based company Nvidia, which makes powerful chips for managing AI.
Why are US companies like Nvidia suffering?
It is said that the cost of developing Deepseek is much less than the cost of developing US-based AI apps. Dipsic cost billions of dollars less to develop than US apps. And this variation in costs has raised questions about the survival of US dominance in the AI market.
Deepseek's lower app development cost changed the stock market's calculations on January 27.
Shares of companies like chipmakers and data centers around the world have seen big changes. Among them, the worst affected is the US-based company Nvidia, which makes powerful chips for managing AI.
Their market value fell by $600 billion on Monday, the largest one-day loss for any company in US history.
Nvidia has long been the world's most valuable company by market capitalization, but on Monday its market value fell from $3.5 trillion to $2.9 trillion, dropping it to third place behind Microsoft and Apple.
Deepseek uses much less expensive and less complex technology than Nvidia for their AI.
Deepseek's recent success has put the world's top AI chip makers in front of a new reality.
Until now, it has been a common perception that big budgets and chips made with cutting-edge technology are necessary to improve AI. However, Deepseek's recent success is expected to change this perception and the AI market in the future.
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