Financial markets have been rocked by the app’s unexpected rise in popularity and DeepSeek’s purportedly low prices when compared to AI firms with headquarters in the US.
Marc Andreessen, a venture entrepreneur from Silicon Valley, has praised DeepSeek as “one of the most amazing and impressive breakthroughs” in artificial intelligence.
The company claims that at a tenth of the price, its most recent AI models are comparable to industry-leading models in the US, such as ChatGPT.
The app’s developers claim that it only cost $6 million (£4.8 million) to develop, a significant reduction from the billions of dollars that US AI companies have spent.
DeepSeek: What is it?
The Chinese artificial intelligence startup DeepSeek was established in the southeast Chinese city of Hangzhou.
