Chinese AI start-up DeepSeek overtakes ChatGPT as top-rated app in the US

In just a weekend, Chinese AI start-up DeepSeek caused an upset among Silicon Valley – and today, has just taken the top spot on Apple’s App Store in the US with its AI Assistant, overtaking OpenAI’s ChatGPT in ratings and downloads.

This achievement marks the first time a Chinese AI model has been widely recognized in the US for matching—or even surpassing—the performance of top American models, signaling a significant shift in the global AI landscape.

DeepSeek-R1 ranked third across all categories on the international large model leaderboard, Arena, in benchmark tests on Friday.

DeepSeek R-1 shocked the industry as it matched OpenAI’s o1 in performance, while keeping it fully open-source, achieving this breakthrough at an exceptionally low cost.

Founded in 2023 by hedge fund manager Liang Wenfeng, DeepSeek is relatively new to the scene compared to Chinese tech giants such as Baidu. 

Yet the startup has gained significant attention earlier this year when it released its R1 model, a cutting-edge AI capable of self-learning on a budget that pales in comparison to its US competitors. 

By using just 2,048 Nvidia H800 GPUs and US$5.6 million, the company trained a 671-billion-parameter model, demonstrating resourceful engineering in a landscape dominated by expensive mega-clusters.

The app’s success in the US has positioned DeepSeek as a serious player in a short amount of time, sparking renewed debate about competition between Chinese and American AI technology.

At home, DeepSeek’s ascent has made Liang a national icon. The company’s team—composed of PhDs from top Chinese universities like Peking, Tsinghua, and Beihang—embodies a homegrown effort to challenge global tech giants. Liang’s focus on local talent aligns with Beijing’s push for self-reliance in high-tech innovation.

Alexandr Wang, CEO of Scale AI, stated that while the US has arguably maintained an edge over China in the AI race over the past decade, the release of DeepSeek’s AI model could “change everything”. 

Despite its achievements, challenges remain. DeepSeek is funded primarily through Liang’s hedge fund, High-Flyer, whose returns have recently lagged as the founder prioritizes his AI venture. Meanwhile, US rivals like OpenAI and xAI are scaling up with unprecedented investments in next-generation AI infrastructure. OpenAI’s US$100 billion Stargate initiative and xAI’s plans for a 1-million-GPU supercomputer highlight the resources available to maintain dominance.

DeepSeek’s AI Assistant success underscores the start-up’s ability to compete with the best in the field, raising the stakes in the global AI race. Whether DeepSeek can sustain this momentum against well-funded rivals will define its role as a disruptor in the AI industry’s rapidly evolving landscape.

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