A Chinese AI app just overtake ChatGPT as the most popular free app on Apple’s U.S. store. DeepSeek, the startup behind it, climbed to the top spot less than five months after launching its Assistant feature in January.
Data from Sensor Tower shows the tool—powered by DeepSeek’s “V3” model—has caught on fast with American users. But the bigger shock? The company’s new R1 AI system, built with a shoestring budget of $5.6 million, is making waves globally.
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Silicon Valley’s buzzing with questions: Can cash-flush American tech giants keep their lead? DeepSeek, founded by hedge fund billionaire Liang Wenfeng, isn’t playing by the usual rules. Unlike U.S. rivals like Google DeepMind or OpenAI, which guard their AI methods closely, the Chinese firm dropped a 98-page public report explaining exactly how R1 works.
Here’s the kicker: R1 runs on 671 billion parameters—a measure of AI complexity—but required only 2,048 high-end Nvidia chips to develop. That’s peanuts compared to the hardware stacks used by Western competitors.
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Tech watchers are drawing comparisons to DeepMind’s scrappy early days. One analyst quipped, “They’re doing rocket science on a bicycle budget.” For now, DeepSeek’s rise hints at a shifting playbook in the AI race—where transparency and hustle might rival deep pockets.
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