Chinese DeepSeek causes drop in Nvidia and ChatGPT shares: Becomes most downloaded app in the US

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The 'sudden' decline of ChatGPT against the Chinese artificial intelligence application continues. Today (January 27), while OpenAI and Nvidia shares saw drops of up to 7 percent, DeepSeek's popularity is also rising rapidly. The Chinese artificial intelligence application reached a record number of downloads in a single day, surpassing ChatGPT in the free apps section of Apple's App Store.

The Chinese artificial intelligence (AI) application DeepSeek became the most downloaded app on the Apple App Store in both China and the US on Monday.

Following this momentum, DeepSeek's shares on international stock exchanges rose 'strongly' at the opening on Monday. Many stocks gained more than 10 percent in value.

The Chinese artificial intelligence startup DeepSeek released its model, DeepSeek R1, which it launched as 'open source' in January. This model achieved a significant technological breakthrough by using 'deep learning' methods to enable artificial intelligence to 'develop autonomous reasoning capabilities.'

According to DeepSeek, the performance of this model in tasks such as mathematics, coding, and natural language reasoning is comparable to leading artificial intelligence models like those of OpenAI.

OpenAI CEO Sam Altman claimed last week that billions of dollars in investment are needed to develop artificial intelligence. DeepSeek developed its model, which has performance equivalent to ChatGPT, for 5.5 million dollars.

PRAISE FOR DEEPSEEK FROM US EXPERTS

The application attracted global attention in a short time. Artificial intelligence experts and investors in the US drew attention to the innovations brought by DeepSeek, which offers its artificial intelligence code as 'open source.'

According to a report by the Wall Street Journal (WSJ), the fact that programmers produced an artificial intelligence model with performance nearly equal to its American competitors despite using less powerful chips has astonished Silicon Valley.

For example, in a social media post on Friday, Marc Andreessen, a venture capitalist in Silicon Valley who advises President Donald Trump, stated, 'DeepSeek R1 is one of the most amazing and impressive breakthroughs I have ever seen.'

Additionally, Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, stated that he and his colleagues were 'excited' about DeepSeek. Pointing to the open-source models where the software code behind DeepSeek's AI model is offered for free, Woodside remarked, 'This is very cool.'

News Source: 12punto