DeepSeek, a Chinese AI startup, has surged ahead of its rival ChatGPT to become the top-rated free app on Apple’s App Store in the United States. The company’s AI assistant, powered by the DeepSeek-V3 model, is claimed to outperform other open-source models and rival the most advanced closed-source AI models globally. This breakthrough has sparked significant attention in Silicon Valley since its launch on January 10, as tracked by app data research firm Sensor Tower.

AI Rivalry and U.S. Export Controls
The success of DeepSeek highlights the growing competition in the AI sector, challenging the conventional wisdom about U.S. dominance in AI development. This shift comes despite the Biden administration’s efforts to curb China’s access to advanced AI training chips through export controls. Since 2021, these restrictions have targeted the export of cutting-edge chips, like Nvidia’s most advanced models, to China.

However, DeepSeek’s use of Nvidia’s H800 chips for training, which are not as powerful as the restricted models, and the low training costs—reportedly under $6 million—have raised questions about the effectiveness of these export controls. U.S. tech executives have expressed concerns that the restrictions may not be as impactful as intended.

DeepSeek’s Rapid Rise
Founded in 2023 in Hangzhou, DeepSeek has quickly gained recognition in the U.S. tech community, becoming the first Chinese AI startup to be lauded for matching or surpassing the performance of leading U.S. models. Though little is known about the company, its rise represents a significant moment in the ongoing global race for AI dominance.

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