The mobile app for DeepSeek, a Chinese AI lab, has surged to the No. 1 spot in app stores around the world, dethroning ChatGPT.
Its success stems from the release of innovative open AI models that boast significant cost-efficiency in training compared to competitors like OpenAI and Google.
This disruption has rattled the tech industry, with major players scrambling to analyze DeepSeek’s groundbreaking methods. While its global downloads have skyrocketed, the app’s ability to maintain its dominance remains uncertain. Key Points
Rapid Global Rise: On iOS, DeepSeek is currently the No. 1 free app in the U.S. App Store and 51 other countries. (source: Appfigures)
Explosive Growth: Downloads doubled from 1 million to 2.6 million in three days, with 80% of its downloads occurring in the past week, according to Sensor Tower. DeepSeek saw almost 300% more app downloads than Perplexity.
Global Reach: China represents only 23% of DeepSeek’s total downloads, according to Sensor Tower quoted by TechCrunch.
Efficiency Breakthrough: Compared to other leading AI models DeepSeek says its models were trained for just a fraction of the price with significantly worse AI chips.
Tech Industry Shockwaves: Nvidia’s stock price dropped as much as 17% on Monday, and major tech players are now analyzing DeepSeek’s methods.
Challenges Ahead: Reports of “large-scale malicious” attacks have forced DeepSeek to temporarily limit customers outside of China from registering for the app.
Key Quotes
“DeepSeek’s r1 is an impressive model, particularly around what they’re able to deliver for the price,” OpenAI chief Sam Altman said on X. (source)
“Deepseek R1 is AI’s Sputnik moment,” said billionaire investor Marc Andressen. (source)
Implications
Cost-Efficiency Shift: DeepSeek’s success highlights the potential for more affordable and efficient AI model training, setting a new benchmark in the industry.
Increased Competition: The rapid growth of DeepSeek underscores the volatility of the consumer AI market, challenging the dominance of established players like ChatGPT and Gemini.
Pressure on Rivals: Competitors may feel compelled to accelerate the release of advanced models or justify the high costs of current technologies.
