Chinese AI startup DeepSeek surpasses ChatGPT in the Apple App Store.

In January 2025, the Chinese AI startup DeepSeek made headlines by surpassing ChatGPT to become the top-rated free app on the US Apple App Store. This remarkable achievement occurred just over two weeks after the launch of its AI Assistant, powered by the DeepSeek-V3 model . The rapid ascent of DeepSeek raises significant questions regarding the effectiveness of US export controls aimed at curbing China’s advancements in artificial intelligence technology. Notably, despite these restrictions, DeepSeek managed to leverage Nvidia H800 chips for training its model at a cost of under $6 million.

Founded in May 2023 by Liang Wenfeng, a prominent figure in both the hedge fund and AI industries, DeepSeek operates independently but is solely funded by High-Flyer, a quantitative hedge fund also founded by Wenfeng. This unique funding model has allowed DeepSeek to pursue ambitious AI projects without the pressure of external investors, enabling them to prioritize long-term research and development. DeepSeek's team primarily comprises young, talented graduates from top Chinese universities, fostering a culture of innovation and a deep understanding of the Chinese language and culture. Notably, the company's hiring practices prioritize technical abilities over traditional work experience, resulting in a team of highly skilled individuals with a fresh perspective on AI development.

Both Open AI and Deepseek have leveraged AI to create their own large language models (LLM). However, unlike traditional models that depend on supervised fine-tuning, DeepSeek-R1-Zero claims to have emerged with robust reasoning abilities after training solely with RL. However, to enhance readability and address language inconsistencies, DeepSeek introduced DeepSeek-R1, which matches OpenAI’s o1 model in performance on reasoning tasks.

DeepSeek also advanced technical designs such as multi-head latent attention (MLA) and a mixture of experts, which made its models more cost-effective. The latest DeepSeek model required just one-tenth of the computing power used by Meta’s comparable Llama 3.1 model, according to a report by Epoch AI.

In conclusion, DeepSeek's emergence as a formidable competitor in the AI space underscores significant implications for global tech dynamics. As it continues to gain traction in international markets, particularly within the United States, it challenges preconceived notions about technological superiority and access. The case of DeepSeek illustrates how innovation can thrive even under restrictive conditions and highlights the need for ongoing scrutiny regarding international tech policies

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Sarah H

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