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A Chinese AI company which rivals ChatGPT, is attracting attention in Silicon Valley with its rapid rise, almost surpassing leading US AI companies like OpenAI and Meta.
DeepSeek is a Chinese AI startup that develops open source extended language models (LLMs), according to the company’s website.
The company on January 20 unveiled R1, a specialized model designed for solving complex problems, which “climbed to the top 10 in the world in terms of performance” and was built much faster, with less AI chips numerous and less powerful, at a much higher price. lower cost than other American models, according to the Wall Street Journal.
The announcement of the app’s latest version came on President Donald Trump’s inauguration day, as another Chinese social media app, TikTok, made headlines over whether it would be banned in the United States.
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A chatbot application developed by Chinese AI company DeepSeek. (Getty Images/Getty Images)
Yann LeCun, Chief AI Scientist at Meta, took to social media to talk about the app and its rapid success.
He emphasized in an article on Threads, that what struck him most about DeepSeek’s success was not the increased threat created by Chinese competition, but the value of keeping AI models open source, so that everyone could benefit from them.
“It’s not that Chinese AI ‘outperforms US AI,’ but rather that ‘open source models outperform proprietary models,'” LeCun explained.
“DeepSeek took advantage of open research and open source (e.g. PyTorch and Llama de Meta). They came up with new ideas and built them based on other people’s work,” LeCun continued . “Because their work is published and open source, everyone can benefit from it. That’s the power of open research and open source.”
Just days after the release of the latest version of DeepSeek, Meta CEO Mark Zuckerberg announced that his company plans to spend more than $60 billion in 2025, while remaining committed to AI.
Meta’s latest move aims to strengthen the company’s position against rival OpenAI and Google in the race to dominate AI.
Major tech companies have invested tens of billions of dollars to develop AI infrastructure following the success of OpenAI’s ChatGPT.
Meta’s announcement comes just days after Trump announced that OpenAI, SoftBank and Oracle would form a company called Stargate and invest $500 billion in AI infrastructure in the United States.
“Deepseek R1 is one of the most astonishing and impressive advances I have ever seen,” wrote Marc Andreessen, a Silicon Valley venture capitalist who advised Trump, in an article on X. “And as open source, a profound gift to the world.”
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“DeepSeek R1 is AI’s Sputnik moment,” Andreessen wrote in a comment.
Alexandr Wang, CEO of Scale AI, a San Francisco-based software company, also weighed in on the technology and said DeepSeek’s rapid success was a “wake-up call for America.”
“DeepSeek is a wake-up call for America, but it doesn’t change the strategy,” Wang wrote in an article on X.
Wang explained that “the United States must innovate faster and run faster, as we have done throughout the history of AI” and “strengthen export controls on chips so that we can keep our future advance.”
“Every major breakthrough in AI has been American,” Wang said.
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The ChatGPT logo is seen on a smartphone screen in this photo illustration in Reno, the United States, January 3, 2025. (Jaque Silva/NurPhoto via Getty Images / Getty Images)
DeepSeek’s development was led by a Chinese hedge fund manager, Liang Wenfeng, who became the face of the nation’s AI push, the Journal wrote.
Experts told the Journal that DeepSeek’s technology still lags behind OpenAI and Google. However, it is a close rival, even if it uses fewer and less advanced chips and, in some cases, skipping steps that American developers consider essential.
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On Saturday, the Journal reported that both DeepSeek models were ranked in the top 10 on Chatbot Arena, a platform hosted by researchers at the University of California, Berkeley that evaluates chatbot performance.
Although DeepSeek’s flagship model is free, the Journal reported that the company charges users who connect their own applications to DeepSeek’s model and computing infrastructure.
FOX Business’ Breck Dumas and Reuters contributed to this report.
