DeepSeek is making headlines as one of the most talked-about AI chatbot apps right now. In just a short time, it became a top-rated app on both Apple App Store and Google Play, drawing global attention and sparking debates about the future of AI innovation. This Chinese AI startup is not only competing with major players but is also challenging the dominance of U.S.-based tech firms.
DeepSeek was created by High-Flyer Capital Management, a Chinese hedge fund that has been using artificial intelligence for financial trading. Liang Wenfeng, the co-founder, started the company with a strong focus on AI and launched DeepSeek as a separate research lab in 2023. Later, it became a standalone business aiming to build smarter, more efficient AI tools.
Despite challenges such as U.S. chip export restrictions, DeepSeek moved forward by using alternative hardware like Nvidia H800 chips. The company built its own infrastructure to train large-scale models and focused on hiring top talent, including AI PhDs and even people from non-tech backgrounds to improve how the AI understands diverse topics.
DeepSeek gained attention with the release of its DeepSeek-V2 and V3 models. These AI models not only offered high performance but were also cost-effective. They pushed local competitors like Alibaba and ByteDance to lower their prices or offer their models for free. DeepSeek’s reasoning model, R1, was especially impressive. It can verify its own answers, making it more reliable in areas like science, math, and logic. However, being based in China, its AI responses are filtered to comply with the country’s internet regulations.
In early 2025, DeepSeek’s chatbot app had over 16 million visits and was gaining popularity quickly, although it still lagged behind ChatGPT’s user base. Developers liked DeepSeek’s models for their flexibility and performance. Though not fully open-source, the company offers generous licensing for commercial use. On Hugging Face, developers have created hundreds of versions of the R1 model, and these have been downloaded millions of times.
DeepSeek’s pricing strategy is also raising eyebrows. It offers products at extremely low prices and sometimes even for free. It has not taken funding from outside investors despite strong interest. The company claims its tech efficiency allows this approach, although some experts question the numbers.
DeepSeek’s success has shaken the global tech industry. The rise of its reasoning models reportedly influenced Nvidia’s stock price and prompted statements from leaders at companies like OpenAI and Microsoft. While some, including Nvidia’s CEO, praised DeepSeek for its innovation, others, like OpenAI, expressed concern, calling it a state-influenced entity. The U.S. and South Korea have already banned DeepSeek from government devices, citing data and security risks. Microsoft also does not allow its employees to use the tool.
It’s clear that DeepSeek is now a serious player in the global AI race. With more advanced models expected, it remains to be seen how governments and tech giants will respond. But for now, DeepSeek has proven that innovation can come from anywhere and that the AI landscape is changing fast.
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