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By:
with the BBC
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Prepared by: Endrit Berisha
- 28 January 2025 09:06
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An artificial intelligence robotic conversationalist from Chinese company DeepSeek has quickly become the most downloaded app in Apple's app stores since its launch in January in the United States.
The app's sudden growth, as well as DeepSeek's low costs relative to US-based intelligence companies, has rattled financial markets, writes with the BBC.
Businessman and software engineer Marc Andreessen has praised DeepSeek as "one of the most amazing explosions" in AI (artificial intelligence).
The company has said that its latest AI models are on par with leading models in the US – like ChatGPT – but at significantly lower costs.
The developers of the app have said that it only cost them $6 million to develop, much less than the billions spent by American companies.
What is “DeepSeek”?
DeepSeek is a Chinese artificial intelligence company based in Hangzhou, southeast China.
The company was launched in July 2023, but the AI-powered app wasn't launched in the US until January 10.
Who is its founder?
Liang Wenfeng financed Deepseek with money from a fund he launched himself.
The 40-year-old, an electronics engineer, reportedly opened a store selling "Nvidia A100" chips, now banned from export to China.
Experts believe that the collection of chips helped them unlock DeepSeek, combining them with lower-end chips.
Liang was recently seen at a meeting between industry experts and Chinese Premier Li Qiang.
Who is using it?
The company's AI app is available for download on the AppStore and online on the website.
The service, which is free, has quickly become the most downloaded app on Apple, although some users have reported having trouble using it.
It has also become the highest rated free app in the US.
What does the app do?
"DeepSeek" has become famous thanks to its powerful AI assistant that operates similarly to ChatGPT.
According to the description in the AppStore, the application is designed to answer people's questions and improve living efficiency.
Comments from users who rated the application were that the application "provides more personal writing".
But the app is truncated on certain political questions.
When the BBC asked the app what happened in Tiananmen Square on June 4, 1989, DeepSeek did not provide an answer.
"I'm sorry, I can't answer this question. I'm an AI assistant designed to provide helpful and non-injurious answers," the response to this question reads.
Meanwhile, if you ask "ChatGPT" what happened that day, this is the answer: "On June 4, 1989, the Tiananmen Square massacre occurred, one of the most tragic and sensitive events in modern Chinese history. This event marked the end of the massive student and citizen protests that had begun in April 1989, demanding political reforms, more freedoms, and the fight against corruption within the Communist Party of China."
Why is it affecting American companies like Nvidia?
DeepSeek was reportedly created for a fraction of the cost of its American rivals, raising questions about the future of American dominance in this area.
The company's reported low costs rattled U.S. financial markets on January 27, sending the tech giant's Nasdaq down more than 3 percent, among markets that include the world's largest chipmakers and data centers.
Nvidia, a US-based company that produces the most powerful chips used for artificial intelligence, appears to have been hit the hardest.
On Monday alone, the company lost nearly $600 billion in market value – the biggest one-day drop in U.S. history. Its shares fell 17 percent in value during the day.
Nvidia had been the world's most valuable company by market value, but fell to third place behind Apple and Microsoft on Monday, when its value fell to $2.9 trillion from $3.5 trillion, according to Forbes.
DeepSeek uses less advanced chips than those created by Nvidia.
Their success undermines the belief that the most expensive chips are the only ones capable of advancing AI.
