DeepSeek's Disruptive Low-Cost AI Models Shake Up U.S. Market

DeepSeek, a Chinese startup, has generated buzz with its low-cost AI models, surpassing OpenAI's ChatGPT in the U.S. App Store. While experts are intrigued, some remain skeptical. The models, now part of Snowflake's offerings, highlight open-source AI's rising viability against expensive, proprietary technologies.

In a significant development, Chinese startup DeepSeek has made waves with its innovative AI models, sparking a stock selloff among U.S. companies as its AI assistant overtakes OpenAI's ChatGPT in Apple's U.S. App Store. Despite using less-powerful Nvidia chips and spending under $6 million, DeepSeek's success has drawn attention from AI experts, who both praise and question its breakthrough.

Leading U.S. tech firms are now scrutinizing DeepSeek's offerings, particularly the V3 model, even as Snowflake adds it to their marketplace following customer demand. However, there are concerns about potential chip shortages due to the model's popularity. The open-source nature of DeepSeek's models is also being hailed as a viable alternative to the costly, closed systems dominating the market.

DeepSeek's financial mystery remains as industry insiders speculate its real expenditure surpasses the reported budget. As Wall Street tech giants prepare to release earnings reports, DeepSeek's rise challenges the notion that only large capital investments can drive AI advancements.

(With inputs from agencies.)