DeepSeek, a new AI app made in China, has quickly risen to the top of Apple’s App Store, surprising investors and causing some tech stocks to drop. Released in January 2025, it impressed experts with its abilities and sparked major conversations in the tech world. US President Donald Trump called it a “wake-up call” for American companies to step up their game.

What makes DeepSeek stand out is that it was created with much lower costs compared to big AI models like OpenAI’s. DeepSeek reportedly used fewer advanced chips, saving money, which led to a huge loss for chipmaker Nvidia—its market value dropped by nearly $600 billion in a single day. This raises concerns about the effectiveness of US efforts to limit China’s growth in tech, especially since the US had restricted exports of advanced chips to China.

DeepSeek’s rapid success is seen as a result of China’s strong focus on tech. China is trying to move from traditional manufacturing to leading in areas like AI, electric vehicles, and chip technology. The app’s cheap development cost is impressive, with its creators claiming they trained it for just $6 million, far less than the $100 million spent on rival AI models like GPT-4.

However, DeepSeek does face challenges, particularly with censorship. It avoids answering politically sensitive questions, like the Tiananmen Square massacre, which is a sensitive topic in China. This censorship could make it difficult for DeepSeek to gain global popularity, but it still represents a leap for China’s tech ambitions.

The company behind DeepSeek, founded by Liang Wenfeng, is seen as breaking the mold in China’s AI sector. Liang, a finance background entrepreneur, is pushing China to innovate and not just imitate other countries. His success is seen as a step toward China achieving tech independence from the West.

DeepSeek’s success also raises questions about the future of high-performance chips and AI innovation. Some experts believe it shows that AI can be developed without expensive resources, which puts pressure on companies like OpenAI and Nvidia.

In China, DeepSeek is celebrated as a major achievement, showing the country’s growing tech power. While its success is a victory for China’s tech efforts, it might also lead to more isolationism in the tech world, as other countries consider how to balance competition and cooperation with China.

This story is a clear example of how rapidly China is advancing in AI, a trend that could reshape the global tech landscape, as reported by BBC.

Credit : BBC

https://www.bbc.com/news/articles/c5yv5976z9po

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