AI Assistant Created by Chinese Startup DeepSeek Becomes Top-Downloaded App in Apple’s US App Store
DeepSeek, a Chinese startup, created an AI assistant that became the number one most-downloaded app in Apple’s US App Store over the weekend, sending shockwaves through Silicon Valley and causing the price of major tech stocks to plummet. Nvidia saw more than $460 billion erased from its market capitalization on Monday, a drop Bloomberg characterized as the “biggest in US stock market history.”
The Open Source Model
The shake-up stems from an open source model developed by DeepSeek called R1, which debuted earlier this month. The company said that it rivals the current industry leader: OpenAI’s 01. But what stunned the tech industry most was that DeepSeek claimed to have built its model using only a small fraction of the specialized computer chips that AI companies typically need to develop cutting-edge systems.
Impressive Performance
On Monday, DeepSeek posted a message on its website saying it was temporarily limiting new registrations due to “large-scale malicious attacks” on the company’s services.
DeepSeek’s R1 model “challenges the notion that Western AI companies hold a significant lead over Chinese ones,” Jack Clark, cofounder of the AI startup Anthropic, wrote in his newsletter. Venture capitalist Marc Andreessen called it “AI’s Sputnik moment.”
Functions and Limitations
DeepSeek’s AI assistant is currently available for free and comes with three main functions. First, users can ask the chatbot questions and receive direct answers. For example, when WIRED asked for recipe ideas incorporating pomegranate seeds, DeepSeek’s chatbot quickly provided a list of 15 options ranging from yogurt parfaits to a “Middle Eastern-inspired” rice pilaf, but it didn’t cite any specific chefs or recipes.
DeepSeek’s app also has a search mode that surfaces answers from the internet. When WIRED asked, “What are some important news stories today?” DeepSeek’s chatbot cited the Israel-Hamas ceasefire and linked to several Western news outlets such as BBC News, but not all of the stories appeared to be relevant to the topic. Ironically, one was a New York Times story about DeepSeek’s impact on the stock market.
Lastly, there’s a “DeepThink” mode that allows users to tap into DeepSeek’s R1 model, which was built upon the company’s existing V3 model. The difference between the two is that R1 has so-called “reasoning” abilities that allow it to explain step by step how it reached its conclusions. For example, when asked, “What are the most important historical events of the 20th century?” DeepSeek initially provided a long meandering answer that began with a number of broad questions.
Censorship Concerns
But before R1 could finish its reply, the entire answer disappeared and was replaced by a message that read, “Sorry, I’m not sure how to approach this type of question yet. Let’s chat about math, coding, and logic problems instead!” A number of experts and early adopters have noted that DeepSeek, like other tech platforms that operate in China, appears to extensively censor topics deemed sensitive by the Chinese Communist Party
Competitive Threat
But despite these limitations, DeepSeek’s free chatbot could pose a serious threat to competitors like OpenAI, which charges $20 per month to access its most powerful AI models. Unlike its Chinese counterpart, OpenAI doesn’t disclose the underlying “weights” of its models, which determine how the AI processes information. It also has declined to make public the full “chains of thought” produced by its own reasoning models.
Conclusion
DeepSeek’s AI assistant has sent shockwaves through the tech industry, causing a significant drop in major tech stocks and raising concerns about the company’s ability to rival Western AI companies. While the chatbot’s performance is impressive, its limitations and potential for censorship are significant concerns. As the AI landscape continues to evolve, it will be important to monitor DeepSeek’s progress and the impact it has on the industry.
FAQs
Q: What is DeepSeek’s AI assistant?
A: DeepSeek’s AI assistant is a chatbot that uses an open source model called R1 to answer questions and provide information.
Q: How does DeepSeek’s AI assistant differ from other AI assistants?
A: DeepSeek’s AI assistant is built using a small fraction of the specialized computer chips that AI companies typically need to develop cutting-edge systems, making it a more affordable and accessible option.
Q: Is DeepSeek’s AI assistant free?
A: Yes, DeepSeek’s AI assistant is currently available for free.
Q: What are the limitations of DeepSeek’s AI assistant?
A: DeepSeek’s AI assistant has limitations, including its potential for censorship and its inability to fully explain its reasoning processes.
