DeepSeek is a Chinese artificial intelligence (AI) company founded in 2023 by Liang Wenfeng, a former math prodigy and hedge fund manager. Based in Hangzhou, Zhejiang, the company specializes in developing open-source large language models (LLMs) that rival leading AI systems in performance while being more cost-effective.
In January 2025, DeepSeek released its first free chatbot app, based on the DeepSeek-R1 model, for Apple iOS and Android platforms. By late January, this app had surpassed ChatGPT as the most-downloaded free app on the iOS App Store in the United States, highlighting its rapid adoption and popularity.
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DeepSeek’s success has had significant market implications, leading to substantial declines in the stock values of major tech companies. For instance, Nvidia’s share price dropped by 18% following DeepSeek’s rise, reflecting the disruptive impact of its efficient AI models on the industry.
The company’s open-source approach allows its AI models and training details to be freely available for use and modification, promoting a collaborative tech culture. This strategy has not only democratized access to advanced AI technology but also challenged the dominance of established players in the field.
However, DeepSeek’s rapid ascent has raised concerns regarding data security and potential biases, especially given its adherence to Chinese censorship laws. Lawmakers and experts have expressed apprehension that the app could expose U.S. users to risks and promote censorship.
In summary, DeepSeek represents a significant development in the AI landscape, offering high-performing, cost-effective, and accessible AI solutions, while also prompting discussions about data security and geopolitical implications.