The emergence of Chinese AI app DeepSeek has sent shockwaves through financial markets and the global tech industry. Even U.S. President Donald Trump weighed in, calling it “a wake-up call” for American tech firms.
DeepSeek’s claim that its R1 AI model was developed at a fraction of the cost of its competitors has raised serious questions about the industry’s future. The rapid rise of the startup has already impacted stock prices of major AI firms and intensified competition in the AI space.
DeepSeek Becomes the Top AI App
In just a week, DeepSeek became the most downloaded free app in the U.S. on Apple’s App Store, surpassing OpenAI’s ChatGPT. The milestone has amplified discussions about whether DeepSeek can truly compete with more established AI tools like Google’s Gemini and OpenAI’s models.
Comparing DeepSeek and ChatGPT
Both ChatGPT and DeepSeek excel in assisting users with writing, summarizing information, and generating creative content. However, there are notable differences in their approach.
For example, when asked to summarize the best Scottish football players of all time:
- DeepSeek quickly produced a top-ten list, complete with player positions, clubs, and achievements.
- It also included non-Scottish players like Brian Laudrup and Henrik Larsson, noting their significance in Scottish football.
- ChatGPT generated a similar list but provided a more structured and polished blog post.
Both AI models were highly comparable in this task, showing that DeepSeek can stand alongside U.S. AI giants.
DeepSeek Excels at Coding Assistance
DeepSeek’s performance in coding assistance has also caught the attention of developers. Javier Aguirre, an AI researcher at Samsung Medical Center in Seoul, praised DeepSeek’s reasoning abilities:
“Today I had a tricky problem. Even ChatGPT o1 couldn’t solve it, but DeepSeek provided an instant and accurate solution.”
Similarly, Google’s Head of Chrome Developer Experience, Addy Osmani, noted that DeepSeek, when combined with Claude Sonnet (Anthropic’s AI tool), offers one of the best hybrid coding solutions.
Creativity and Storytelling: Different Approaches
When asked to generate story ideas for children about a boy who lives on the moon:
- ChatGPT provided six well-organized story concepts.
- DeepSeek generated a full 387-word story instead of multiple ideas.
While ChatGPT excelled at brainstorming, DeepSeek focused on delivering a complete story—albeit a simple one. This contrast highlights their different approaches to AI-generated creativity.
Handling Complex Historical Topics
When summarizing the causes of World War I, all three AI tools—DeepSeek, ChatGPT, and Google’s Gemini—performed well:
- ChatGPT provided a detailed and structured explanation.
- DeepSeek offered a more concise overview but covered the main events.
- Gemini included links to reputable sources like the Imperial War Museum.
The comparison showed that DeepSeek can compete with its U.S. counterparts in educational and historical queries.
DeepSeek Signals a Shift in AI Leadership
The success of DeepSeek challenges the narrative that AI dominance is reserved for U.S. firms. Prof. Neil Lawrence of Cambridge University sees this as just the beginning:
“This is the tip of the iceberg for innovation in AI models.”
He compared DeepSeek’s rise to James Watt’s improvements to the steam engine—a revolutionary step rather than a brand-new invention.
Conclusion
DeepSeek’s rapid growth and cost-efficient AI model have disrupted the AI landscape, proving that advanced AI development is no longer limited to U.S. tech giants. As competition intensifies, the industry faces a pivotal moment: will AI development remain an arms race among billion-dollar firms, or will cost-effective, open-source models like DeepSeek redefine the field?