HomeTechnologyBest AppsDeepSeek: The Chinese AI Model Challenging ChatGPT & Reshaping the Tech Landscape

DeepSeek: The Chinese AI Model Challenging ChatGPT & Reshaping the Tech Landscape

What is DeepSeek?

DeepSeek is a privately held Chinese company established in July 2023 by entrepreneur Liang Wenfeng, a Zhejiang University graduate. Liang, who funds DeepSeek through his hedge fund, reportedly oversees about $8 billion in assets, according to a Jan. 27 research note by Ives. Initially focusing on AI-driven investing, Liang acquired a substantial supply of Nvidia A100 chips (now banned from export to China), which later served as the foundation for DeepSeek, as reported by the MIT Technology Review.

Ben Reitzes, head of technology research at Melius, praised DeepSeek for its legitimate AI innovations—especially its improved learning capabilities and more efficient use of memory. However, he also expressed caution regarding the “amount of chips used.”

Strengths of DeepSeek

  • High Accuracy: DeepSeek delivers precise, reliable responses ideal for research, learning, and complex problem-solving.
  • Adaptability: Its AI can be tailored to diverse industries, from healthcare to education and app development.
  • Natural Language Understanding: DeepSeek excels at comprehending and generating human-like text, ensuring seamless interactions.
  • Integration-Friendly: The platform easily embeds into various tech environments, including mobile apps and websites.

How to Get Started

  1. Sign Up for DeepSeek: Register on their platform to obtain API access.
  2. Integrate with Flutter: Use popular Flutter libraries—like http or dio—to connect your application to DeepSeek’s API.
  3. Build and Test: Begin with a simple chatbot or recommendation system. As you gain confidence, expand your AI-driven features.

Is DeepSeek Available in the U.S.?

Yes. DeepSeek AI app is offered in Apple App Store and can also be accessed through its official website. Although the service is currently free and was a top download on the App Store, some users experienced sign-up issues. On its Chinese site, DeepSeek cited “large-scale malicious attacks” as the reason for temporarily limiting new registrations. Existing users, however, remain unaffected.

DeepSeek latest AI model debuted on Jan. 20, prompting Wall Street to reassess the potential and influence of the broader AI sector. He further noted that DeepSeek’s reliance on less advanced Nvidia chips heightened concerns in U.S. tech circles, contributing to downward pressure on the Nasdaq.

How is DeepSeek Different from Other AI Apps?

DeepSeek functions as an open-source large language model leveraging “inference-time computing.” In simple terms, it only activates the most relevant parts of its model for each query, saving both energy and processing power, according to expert Sette.

Tech investor Marc Andreessen described DeepSeek R1 on X (formerly Twitter) on Jan. 24 as “one of the most amazing and impressive breakthroughs I’ve ever seen,” emphasizing the significance of an open-source approach. Venture capitalist David Sacks added that DeepSeek “shows that the AI race will be very competitive.”

Still, Ives voiced doubts about DeepSeek’s potential to gain traction with major U.S. enterprises:

“No U.S. Global 2000 is going to use a Chinese startup DeepSeek to launch their AI infrastructure and use cases,” he wrote. “At the end of the day there is only one chip company in the world launching autonomous, robotics, and broader AI use cases and that is Nvidia.”

Who Is Behind DeepSeek?

Based in Hangzhou, DeepSeek is controlled by founder Liang Wenfeng. He is also a co-founder of High-Flyer, a quantitative hedge fund. In March 2023, High-Flyer announced via its official WeChat account a renewed commitment to explore the essence of Artificial General Intelligence (AGI). DeepSeek was formally created shortly afterward.

Though the extent of High-Flyer’s financial support for DeepSeek is unclear, public records show that both organizations share an office building. High-Flyer also holds patents for chip clusters used to train AI models and publicly disclosed owning a 10,000-unit cluster of Nvidia A100 chips in July 2022.

What Does DeepSeek Mean for Nvidia and Other Tech Companies?

Many on Wall Street are evaluating the long-term implications of a cost-effective Chinese AI system that rivals established generative AI like ChatGPT. Angelo Zino, senior equity analyst at CFRA Research, notes the model’s lower energy consumption and budget requirements have made U.S. tech investors uneasy.

Jay Woods, chief global strategist at Freedom Capital Markets, sees uncertainty ahead, commenting:

“The fact that this technology is supposed to take less energy and is more cost-effective than U.S.-based models has U.S. technology investors very concerned.”

It remains to be seen if the White House will respond, especially given recent discussions about trade policies with China. Former President Trump even signaled potential new tariffs on Chinese imports, yet also allowed breathing room on issues such as the TikTok ban.

What Is Nvidia Saying About DeepSeek?

Nvidia commended DeepSeek in a statement to CBS News, calling it an “excellent AI advancement” and a “perfect example of test-time scaling.” However, the chipmaker emphasized that large-scale AI inference (the process of running AI models to generate predictions or responses) still demands a substantial number of high-performance Nvidia GPUs and robust networking.

Nvidia acknowledged the emergence of a new phase—“test-time scaling”—while continuing to see a need for ongoing pre-training and post-training that requires powerful hardware.

 

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Nvidia Stock Investors Just Got Bad News From DeepSeek

On Monday, Jan. 27, Nvidia faced an unprecedented 17% stock decline, wiping out $589 billion in market value—the worst single-day loss on record for any company at the time. The trigger? News that DeepSeek developed a large language model comparable to ChatGPT, using fewer and less advanced Nvidia chips, coupled with significantly lower costs.

DeepSeek claims to have trained its R1 reasoning model using only 2,048 Nvidia H800 GPUs—hardware designed to comply with U.S. export constraints—yet still achieved a performance level close to OpenAI’s GPT-4. While the U.S. technology community reacts with skepticism and concern, some see the market’s response as an overcorrection, hinting at a potential bargain opportunity for Nvidia investors.

How Does Beijing View DeepSeek?

DeepSeek rapid growth has captured the attention of Chinese leadership. On Jan. 20—the same day DeepSeek-R1 went live—founder Liang attended a private gathering of business leaders and experts hosted by Premier Li Qiang, according to state news agency Xinhua. Liang’s presence could imply DeepSeek’s importance in China’s strategic push to counter U.S. tech export restrictions and elevate its own AI innovation.

DeepSeek vs. ChatGPT: How Do They Compare?

DeepSeek’s unexpected rise has unsettled markets, with former President Trump referring to it as a “wake-up call” for the U.S. tech industry. The claim that its R1 AI model can be developed at a fraction of the cost of Western competitors is prompting investors to question the sustainability of current spending trends in advanced AI.

Even more surprising is how rapidly DeepSeek has become the most downloaded free app in the U.S., overshadowing established AI players like OpenAI’s ChatGPT and Google’s Gemini. Many are now evaluating whether DeepSeek’s approach could reshape the competitive landscape in AI development.

 

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Conclusion

DeepSeek stands as a powerful AI solution that can transform how developers build and deploy intelligent applications. From its adaptability across varied sectors to its capacity for high-accuracy, human-like language understanding, DeepSeek provides robust tools to create innovative and efficient products. Whether you are just venturing into AI development or already experienced in the space, integrating DeepSeek with frameworks like Flutter offers a promising path for pushing the boundaries of app innovation.

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