Chinese AI startup DeepSeek Overtakes ChatGPT as Top Free App on Apple Store, Redefining AI Dominance
DeepSeek's pricing model is significantly lower than that of its competitors, charging just $0.55 per million input tokens compared to ChatGPT's $15.
Chinese AI startup DeepSeek has reportedly surpassed ChatGPT to become the top-rated free application on Apple’s App Store in the United States.
This achievement, which occurred shortly after the app’s launch on January 10, 2025, has sparked significant discussions about the competitive landscape of AI technology and the implications for U.S. dominance in this field.
The DeepSeek app is powered by the DeepSeek-V3 model, which its creators claim outperforms leading closed-source models globally while being developed at a fraction of the cost—approximately $6 million compared to billions spent by U.S. tech giants like Microsoft and Meta.
The model reportedly features over 600 billion parameters and supports advanced functionalities such as file uploads and web searches.
The rapid rise of DeepSeek has caused fluctuations in technology stocks, with shares of companies like Nvidia dropping significantly as investors reassess the need for extensive capital expenditures in AI development. This shift reflects a growing concern among U.S. tech leaders regarding their competitive edge in AI technology.
Despite U.S. export restrictions on advanced AI chips, DeepSeek has managed to innovate using Nvidia’s H800 chips, which are less advanced than the restricted H100 chips. This has led to debates about the effectiveness of current export controls aimed at limiting China’s AI capabilities.
DeepSeek’s pricing model is significantly lower than that of its competitors, charging just $0.55 per million input tokens compared to ChatGPT’s $15. This affordability could drive broader adoption of AI technologies across various sectors.
The emergence of DeepSeek has prompted mixed reactions within Silicon Valley. Some view it as a challenge to U.S. technological leadership, while others believe it could democratize access to AI technologies, fostering innovation and real-world applications across industries.
Notably, investor Marc Andreessen described DeepSeek as “one of the most amazing and impressive breakthroughs” in AI technology due to its transparency and reasoning capabilities when responding to user queries.
DeepSeek’s ascent in the app market not only highlights a potential shift in the global AI landscape but also raises questions about the future of technological competition between China and the United States.
