Chinese AI app DeepSeek has surged to the top of Apple’s App Store, surpassing ChatGPT and other competitors in the US, UK, and China.

Launched in January 2025, DeepSeek is powered by the open-source DeepSeek-V3 model, which its developers claim was created for under $6 million—far less than the billions spent by rivals like OpenAI.

Despite skepticism surrounding this claim, DeepSeek’s performance has been touted as comparable to advanced models such as GPT-4. The app’s rise has raised questions about America’s dominance in AI technology, particularly following US export restrictions on advanced chips to China.

Venture capitalist Marc Andreessen referred to DeepSeek-R1 as “AI’s Sputnik moment,” highlighting its potential to disrupt the industry.

Shares of US tech giants like Nvidia and Microsoft fell sharply following the news, reflecting investor concerns over DeepSeek’s impact on the AI supply chain.

Founded by Liang Wenfeng in Hangzhou, DeepSeek leverages a stockpile of Nvidia A100 chips paired with less powerful alternatives to maintain development amid chip shortages.