DeepSeek AI Gets Popular Amid Soaring Competition with AI
The market impact was immediate. Following the DeepSeek announcement, Nvidia, one of the biggest AI chip makers, saw its largest single-day stock loss in U.S. history. Yet, the stock has rebounded since investors reevaluated the long-term effects of DeepSeek’s cost-effective approach.
One of the primary reasons why DeepSeek has gained popularity is that it is able to work on less-developed chips; hence, overall costs are lowered by 20 to 50 times compared to traditional AI models. This helps make AI technology more accessible to businesses and developers who previously had financial barriers as a result of the high cost of AI training and deployment.
DeepSeek is open source, making it the major driving force for the success of this AI. OpenAI and Google AI have their proprietary AI models. This free software from DeepSeek-V3 allows its users to download, modify, and use freely, and in this case, DeepSeek was placed at the top of the Top Free Apps of Apple’s App Store ahead of ChatGPT and Google AI applications.
DeepSeek is a China-based AI startup founded in 2023, which has quickly gained recognition in the AI industry. The company has released multiple AI models, including DeepSeek-V3 and DeepSeek-R1, that it claims are capable of outperforming leading AI models in the U.S.
DeepSeek has risen rapidly to the attention of tech enthusiasts and global corporations. With AI solutions available at a significantly lower cost, it has become a formidable competitor in the AI race.
Other tech giants haven’t missed the emergence of DeepSeek. In response, Alibaba has released its Qwen 2.5 AI model, which it says beats DeepSeek in many critical areas. Reuters reports that Alibaba’s model is intended to make AI applications stronger within its huge e-commerce and cloud computing system.
Meanwhile, OpenAI has unveiled ChatGPT Gov AI, a dedicated AI tool designed for government agencies. The new model is built with improved security protocols to meet internal safety standards, making OpenAI a strong player in the AI-for-governance sector.
This growing impact of DeepSeek and other foreign AI companies raised concerns within the U.S. tech industry. Former President Donald Trump commented on the issue and said that cost-effective AI production by DeepSeek should be a “wake-up call” for American technology firms. In turn, he declared a $500 billion investment program to boost the development of AI in the United States and continue to be in the lead position in the international AI race.
Despite its impressive growth, DeepSeek has faced several challenges and controversies. The Financial Times reported that DeepSeek allegedly used OpenAI’s models to train its AI, raising concerns about intellectual property violations. OpenAI claims to have evidence supporting this accusation, which could lead to legal disputes.
Moreover, DeepSeek’s chatbot has also faced accuracy issues, as reported by Reuters to have an 83% fail rate in giving reliable information. Users have also received false claims and vague responses, raising serious concerns about the model’s reliability for critical applications.
The firm has also faced security issues. DeepSeek suffered cyberattacks on Monday, stopping new registrations on the platform temporarily. Due to its Chinese origin, the AI software of DeepSeek has also raised questions about potential national security threats, just like previous concerns voiced by the public regarding apps like TikTok and Rednote.
DeepSeek’s emergence in the AI market is a landmark shift in the competitive landscape as it offers affordable AI solutions to challenge the hegemony of the established tech giants. However, its journey is not without hurdles, as issues regarding reliability, security, and intellectual property rights continue to crop up.
The AI industry is set for further evolution as Alibaba, OpenAI, and other major players respond with their own AI advancements. Innovation, affordability, and ethical considerations in technology development are likely to shape the future of AI as the competition intensifies.
