The artificial intelligence landscape is shifting once again—and this time, the disruption is coming from China. The DeepSeek AI chatbot app, developed by the Chinese startup DeepSeek, has surged in popularity across both the Apple App Store and Google Play Store, raising questions about China’s rise in the global AI race and challenging the dominance of U.S. firms like OpenAI, Meta, and Anthropic.
Within just a few months, DeepSeek’s products have begun to rival—and in some cases outperform—established Western AI models. The company’s rapid ascent has captured the attention of technologists, financial analysts, and government regulators alike. But what exactly is DeepSeek? How did it come into being, and why is it suddenly being viewed as a potential geopolitical and technological threat?
Origins: From Hedge Fund to AI Powerhouse
DeepSeek is not a standalone venture in the traditional sense. It began as a research initiative by High-Flyer Capital Management, a quantitative hedge fund based in China. Founded in 2015 by Liang Wenfeng, a former Zhejiang University student, High-Flyer quickly built a reputation for leveraging AI algorithms to inform financial trading decisions.
In 2023, High-Flyer officially launched DeepSeek as a separate AI lab, eventually spinning it off into its own company. DeepSeek’s initial focus was to develop general-purpose and domain-specific large language models (LLMs), competing with the likes of GPT-4 and Claude.
Interestingly, from its inception, DeepSeek made a calculated decision to build its own data center clusters, avoiding dependence on foreign cloud providers. But the company faced hurdles, particularly due to U.S. export restrictions on advanced computing hardware. As a result, DeepSeek was forced to train its models using Nvidia H800 chips—a slower, export-compliant alternative to the H100 chips available to U.S.-based AI companies.
Also Read: DeepSeek Accused of Using OpenAI Model Distillation for AI Training
DeepSeek’s Team and Culture
DeepSeek’s technical team is notably young and academically accomplished. The company actively recruits PhD-level AI researchers from top Chinese universities and also employs non-computer science professionals to ensure its models can grasp a broader range of subject areas.
This unconventional hiring strategy helps diversify the training inputs used for model development and arguably contributes to DeepSeek’s models being highly adaptable across domains. According to The New York Times, this blend of technical talent and subject-matter expertise is a key pillar in DeepSeek’s success formula.
DeepSeek’s Flagship Models and Capabilities
DeepSeek made its first public splash in November 2023 with the launch of three models:
- DeepSeek Coder
- DeepSeek LLM
- DeepSeek Chat
However, the game changed in spring 2024 with the debut of DeepSeek-V2, a multimodal model capable of analyzing both text and images. The model demonstrated remarkable efficiency, performing well in standard AI benchmarks and significantly undercutting the operating costs of rival systems.
The model’s efficiency even forced major Chinese tech giants like ByteDance and Alibaba to lower pricing for their AI services—some even began offering models for free to stay competitive.
Then came DeepSeek-V3, released in December 2024, which elevated the company’s reputation even further. DeepSeek claimed that its V3 model outperformed popular open-source models such as Meta’s Llama and even closed models like OpenAI’s GPT-4o on various benchmarks.
Also Read: Alibaba’s Qwen 2.5-Max AI Model Challenges DeepSeek and OpenAI’s GPT-4
Introducing R1: DeepSeek’s “Reasoning” Model
Perhaps the most innovative addition to DeepSeek’s lineup is DeepSeek R1, released in January 2025. R1 is a reasoning-based large language model, designed to simulate analytical thought processes rather than simply generating probabilistic responses.
What Makes R1 Different?
R1 is designed to fact-check its own output, meaning it takes a few extra seconds—or even minutes—to respond, but the tradeoff is improved accuracy and reliability, especially in domains such as science, mathematics, and physics. This positions R1 as a strong candidate for academic, medical, and industrial use cases where precision is non-negotiable.
In internal tests, DeepSeek claimed that R1 performs on par with OpenAI’s o1 model, setting a new standard for reasoning-based AI applications.
Regulatory and Political Challenges
Despite its technical prowess, DeepSeek operates within a complex regulatory landscape. Chinese internet regulations require that AI models reflect “core socialist values.” As a result, DeepSeek’s chatbot app refuses to engage in discussions about sensitive topics like Tiananmen Square or Taiwanese sovereignty.
Due to these political constraints, DeepSeek’s global ambitions have encountered roadblocks. South Korea and New York State have banned the use of DeepSeek on government devices. In March 2025, U.S. government agencies, including the Commerce Department, advised staff to avoid DeepSeek tools altogether.
Also Read: DeepSeek’s AI Model and China’s Information Control: Global Concerns Rise
Global Recognition and Backlash
While DeepSeek is technically private and reportedly not accepting venture capital funding, it has drawn intense scrutiny. Its pricing model—offering powerful tools for below-market rates or completely free—has raised questions about state subsidies and market distortion.
The company’s rise has had financial repercussions as well. In January 2025, DeepSeek’s success reportedly contributed to an 18% drop in Nvidia’s stock, due to speculation that demand for expensive AI chips might soften if cost-efficient models like DeepSeek’s gain traction.
Notably, OpenAI CEO Sam Altman publicly addressed DeepSeek’s progress, and Microsoft has already added DeepSeek’s models to its Azure AI Foundry platform.
Meanwhile, Meta CEO Mark Zuckerberg downplayed the competitive threat during the company’s Q1 earnings call but emphasized that investment in AI infrastructure would remain a “strategic priority.”
Licensing and Community Adoption
Although DeepSeek’s models are not fully open source, they are available under permissive commercial licenses, which has sparked a boom in community-driven experimentation. On Hugging Face, over 500 derivative models of R1 have been created, with combined downloads surpassing 2.5 million.
This indicates that DeepSeek’s models are not only powerful but also developer-friendly—a critical factor in long-term adoption and ecosystem development.
Traffic and Market Share
Despite a slight 25% drop in traffic in March 2025 compared to February, DeepSeek still recorded over 16.5 million monthly visits, making it the second most visited AI platform after ChatGPT, which reported over 500 million weekly active users.
While DeepSeek still lags far behind in absolute numbers, its trajectory is steep, and its growth is being closely monitored by competitors and regulators alike.
Also Read: DeepSeek R1 Now Available on Azure AI Foundry and GitHub Models
What’s Next for DeepSeek?
As of now, DeepSeek’s future is uncertain. More model improvements are likely, and partnerships like the one with Microsoft suggest growing international interest. But geopolitical tensions and regulatory crackdowns could limit the company’s expansion.
Nevertheless, DeepSeek has clearly shown that AI innovation is no longer the exclusive domain of Silicon Valley. Its success may prompt a broader conversation around international AI standards, security, and competition policy in the years to come.
FAQs About DeepSeek AI Chatbot App
1. What is the DeepSeek AI chatbot app?
DeepSeek is a Chinese-developed AI chatbot app that offers reasoning-based answers using advanced language models.
2. Who created DeepSeek?
DeepSeek was created by High-Flyer Capital Management, a Chinese hedge fund, and later spun off as an independent AI company.
3. What makes DeepSeek’s models different?
DeepSeek’s R1 model is a reasoning-based AI that fact-checks itself, making it more reliable in complex domains like science and math.
4. Is DeepSeek better than ChatGPT?
Benchmark tests suggest that DeepSeek V3 and R1 perform on par with or better than some versions of ChatGPT in certain tasks.
5. Why is DeepSeek controversial?
Due to its origin in China, DeepSeek faces scrutiny over content restrictions, state influence, and potential cybersecurity risks.
6. Can I use DeepSeek for commercial purposes?
Yes, many of its models are available under permissive licenses that allow commercial use, though they are not fully open source.
7. Is DeepSeek available outside China?
Yes, DeepSeek’s chatbot app is available globally through app stores and on Microsoft’s Azure AI Foundry.
8. Are DeepSeek’s models free to use?
Many are either free or priced below market rate, which has contributed to their rapid adoption.
9. What hardware does DeepSeek use for training?
Due to U.S. export restrictions, DeepSeek trains its models using Nvidia H800 chips, which are less powerful than the H100.
10. Will DeepSeek face a global ban?
Some regions like South Korea and New York State have already issued bans on government devices. Wider restrictions are being discussed.