Unlocking DeepSeek: Your Ultimate Guide to the AI Chatbot App

DeepSeek, a groundbreaking AI lab from China, has recently made headlines by rapidly climbing the charts of both the Apple App Store and Google Play Store. This surge in popularity has raised questions among industry experts about the United States’ ability to maintain its competitive edge in the AI sector, particularly regarding the ongoing demand for AI chips.

Origins of DeepSeek

DeepSeek was established with the backing of High-Flyer Capital Management, a prominent Chinese quantitative hedge fund that leverages AI for trading decisions. Co-founded in 2015 by Liang Wenfeng, who began exploring trading during his academic years at Zhejiang University, High-Flyer evolved into a hedge fund in 2019 that concentrated on developing sophisticated AI algorithms.

In 2023, High-Flyer launched DeepSeek as a dedicated lab focused on AI research, which eventually became an independent entity. From the outset, DeepSeek constructed its own data centers for model training. However, similar to other Chinese AI firms, it faced challenges due to U.S. export restrictions on essential hardware. For example, to develop its latest models, DeepSeek relied on Nvidia H800 chips, a less powerful alternative to the more advanced H100 chips available to U.S. companies.

Innovative AI Models by DeepSeek

DeepSeek showcased its initial models—DeepSeek Coder, DeepSeek LLM, and DeepSeek Chat—in November 2023. The real turning point came in spring 2024 with the introduction of the DeepSeek-V2 model family, which garnered considerable attention in the AI industry due to its competitive performance and affordability.

DeepSeek-V2: A Game Changer

• General-purpose text and image analysis.
• Significantly lower operational costs compared to similar models.
• Forced competitors like ByteDance and Alibaba to reduce their pricing and offer some services for free.

The introduction of DeepSeek-V3 in December 2024 further solidified the company’s reputation. According to internal benchmarks, DeepSeek V3 outperformed both open-access models like Meta’s Llama and proprietary models such as OpenAI’s GPT-4.

R1 Reasoning Model

Another notable innovation is the DeepSeek R1 reasoning model, released in January 2025. This model boasts self-fact-checking capabilities, making it highly reliable in fields like physics and mathematics. However, it does have limitations, such as not addressing sensitive topics due to compliance with Chinese regulations. For instance, it avoids questions about Tiananmen Square and Taiwan’s autonomy.

DeepSeek’s Market Position

In March 2025, DeepSeek recorded over 16.5 million visits, placing it second in traffic despite a 25% drop from the previous month. While this pales in comparison to ChatGPT’s staggering 500 million weekly active users, it showcases DeepSeek’s rapid ascent in the AI landscape.

Despite its success, DeepSeek’s business model remains somewhat ambiguous. The company offers its products at significantly reduced prices and often for free, indicating a focus on efficiency and broad accessibility. However, some experts question the validity of its reported figures.

Industry Impact and Controversies

DeepSeek’s disruptive approach has been described as revolutionary yet controversial. The company’s achievements contributed to a notable decline in Nvidia’s stock price and sparked comments from leading figures, including OpenAI’s CEO, who labeled DeepSeek as “state-subsidized.”

As DeepSeek’s influence grows, various governments, including South Korea and New York state, have begun banning its technology from government devices due to concerns over data security and propaganda. Microsoft’s Azure AI Foundry has incorporated DeepSeek, but there are internal restrictions on its use due to potential security risks.

Looking Ahead

The future for DeepSeek remains uncertain. While advancements in AI models are expected, growing scrutiny from the U.S. government regarding foreign influence poses significant challenges. Reports suggest that a ban on DeepSeek technologies in government settings is likely, reflecting a broader concern about the implications of foreign AI capabilities.

For ongoing updates about DeepSeek and its developments in the AI industry, stay tuned to TechCrunch.