Why Chinese AI Startup DeepSeek Beats ChatGPT In Growth: Why It Has Disrupted Tech & Business World?


Tejas Raut

Tejas Raut

Jan 28, 2025


DeepSeek, developed by a Hangzhou-based startup, became the top-rated free app on Apple’s App Store in the US just 17 days after its launch. Powered by the DeepSeek-V3 model, the platform claims to rival the world’s most advanced AI systems, including those by OpenAI, Google, and Microsoft.

Why Chinese AI Startup DeepSeek Beats ChatGPT In Growth: Why It  Has Disrupted Tech & Business World?

This rapid success has positioned DeepSeek as a formidable competitor, sparking concerns about America’s dominance in the AI space and rattling global technology markets.


Why is DeepSeek Gaining Attention?

Two critical factors set DeepSeek apart:

  • Cost-effectiveness: DeepSeek reportedly trained its AI model using Nvidia’s H800 chips for under $6 million.
  • Efficiency: The model operates effectively on reduced-capability chips, challenging the belief that advanced AI requires massive hardware investments.

These advantages question the sky-high valuations of firms like Nvidia and the effectiveness of US export controls aimed at restricting China’s AI advancements.


Impact on Global Tech and Markets

DeepSeek’s rise has disrupted perceptions of China’s AI capabilities, previously thought to lag years behind the US. The app’s success challenges the notion that advanced chips are essential for cutting-edge AI, leveraging open-source technology to bypass trade restrictions.

US tech giants like OpenAI and Meta now face increased competition, while global markets react to this shift. Nasdaq 100 futures and S&P 500 contracts dropped as concerns over America’s technological edge intensified.


DeepSeek’s Features and Reception

DeepSeek’s AI assistant showcases its reasoning while responding to queries, earning praise for transparency. The app has topped charts on iPhones in the US and ranks among the most downloaded productivity apps on Android.

Marc Andreessen called DeepSeek a groundbreaking innovation. Experts warn that while it may not pose a significant threat now, its emergence signals intensifying competition and a faster pace of technological evolution globally.


What Lies Ahead?

DeepSeek’s ascent raises questions about the sustainability of massive AI spending by US firms. As competition heats up, the AI race may redefine global tech leadership, with future breakthroughs expected to reshape the industry landscape.


Tejas Raut
Tejas Raut
  • 14 Posts

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