DeepSeek Overtakes ChatGPT on App store

DeepSeek, a Chinese AI startup, has recently made headlines by overtaking OpenAI's ChatGPT in downloads on the Apple App Store, becoming the top-rated free app in the U.S. as of January 27, 2025. This milestone marks a pivotal moment in the ongoing global AI race, signaling a shift in market dynamics and raising questions about the dominance of established players like OpenAI, Google, and Microsoft.

The success of DeepSeek can be attributed to its advanced R1 model, which boasts 671 billion parameters and excels in reasoning and coding tasks. Users have praised its performance, particularly its ability to handle complex mathematical computations efficiently. Additionally, DeepSeek offers its services at a fraction of the cost of competitors—charging just $0.55 per million input tokens compared to OpenAI's significantly higher pricing. This affordability makes advanced AI technology accessible to a broader audience.

As DeepSeek gains traction, it forces established companies to reevaluate their strategies and pricing models. The competitive landscape is shifting, with investors expressing concerns over U.S. tech leadership in AI amidst rising competition from Chinese firms. The impact is already visible in the stock market, where shares of companies like NVIDIA have declined due to fears that DeepSeek's success could disrupt traditional business models.

In summary, DeepSeek's rise not only challenges existing AI giants but also highlights the potential for innovation and competition in the rapidly evolving field of artificial intelligence.