A Chinese artificial intelligence (AI) model, DeepSeek, has surged to the top of Apple’s App Store downloads, stunning investors and disrupting the global tech landscape. Its rapid rise has sparked concerns among U.S. companies, triggered a massive sell-off in chipmaker stocks, and intensified the AI rivalry between China and the West.
The Rise of DeepSeek
DeepSeek’s latest version, released on January 20, quickly caught the attention of AI experts before making waves globally. What sets DeepSeek apart is its claim of achieving high-level AI capabilities at a fraction of the cost of leading models like OpenAI’s ChatGPT. Unlike its Western counterparts, DeepSeek reportedly requires fewer advanced chips, an innovation that has sent shockwaves through the semiconductor industry.
Its rapid ascent prompted former U.S. President Donald Trump to label it a “wake-up call” for American companies, urging them to “compete to win” against rising Chinese AI innovation.
DeepSeek’s Disruptive Impact on Nvidia and Tech Stocks
The AI model’s efficiency in working with fewer, less sophisticated chips has sent ripples through the financial markets. On January 29, Nvidia, a leader in AI chip production, suffered a record-breaking $600 billion loss in market capitalization—the largest single-day drop in U.S. history. The broader tech-heavy Nasdaq index also experienced a sharp decline, as investors reassessed the long-term demand for high-end chips.

DeepSeek’s development underscores China’s ability to bypass U.S. export restrictions on advanced semiconductors, a strategy that could reshape the AI industry. While Washington has imposed bans on cutting-edge chips to curb Beijing’s technological rise, DeepSeek’s success proves China can still innovate within these constraints.
How DeepSeek Compares to ChatGPT
DeepSeek operates similarly to OpenAI’s ChatGPT, allowing users to engage in human-like conversations, answer queries, and generate content. Reports suggest it performs comparably to OpenAI’s GPT-4o in mathematics and coding, while consuming fewer computational resources.
Its efficiency stems from its ability to generate responses incrementally, mimicking human reasoning. However, like many Chinese AI models, DeepSeek is programmed to avoid politically sensitive topics. When asked about the 1989 Tiananmen Square incident, for example, it responded with a generic disclaimer, highlighting Beijing’s tight control over AI narratives.
Despite this, DeepSeek’s core model appears to be built on robust data sources, with an additional censorship layer applied to filter out restricted content.
Who is Behind DeepSeek?
DeepSeek was founded in December 2023 by Liang Wenfeng, an AI entrepreneur with a background in both technology and finance. Liang, a graduate of Zhejiang University, also leads High-Flyer, China’s first quant hedge fund to surpass 100 billion yuan in assets. His deep expertise in AI-driven finance has positioned him at the forefront of China’s AI revolution.
In a rare interview, Liang remarked, “China’s AI sector cannot remain a follower forever.” His ambition to push China from imitation to innovation has resonated deeply within the country’s tech industry.
Security Concerns and International Reactions
DeepSeek’s rapid success has raised questions about its security and data privacy. Australia’s Science Minister Ed Husic urged caution, emphasizing the need for scrutiny over data management and quality standards.
Additionally, the AI model has faced large-scale cyberattacks, forcing the company to temporarily limit user registrations. These incidents highlight the increasing vulnerability of AI-driven platforms to malicious actors.

China’s Celebration and Global AI Rivalry
China views DeepSeek’s success as a milestone in its journey toward technological self-sufficiency. State-run media has hailed the AI model as a symbol of Beijing’s growing dominance in cutting-edge innovation.
However, experts warn of potential “tech isolationism” as the U.S. and China continue to decouple their technology ecosystems. The geopolitical implications of AI supremacy are becoming clearer, with China proving that it can develop competitive AI without access to top-tier American chips.
The Future of AI: A Turning Point?
DeepSeek’s rise represents a paradigm shift in the AI landscape. By demonstrating that advanced AI can be developed with limited computing resources, it challenges the belief that only companies with massive budgets can lead the industry.
For U.S. AI firms like OpenAI and chipmakers like Nvidia, this could signal an era of heightened competition and reduced dominance. For China, it marks a significant step toward AI self-reliance, reinforcing its commitment to becoming a global leader in artificial intelligence.
As the AI race heats up, one thing is clear—DeepSeek is not just another chatbot. It is a technological and economic disruptor that has forced the world to take notice.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.