Everyone’s Talking About DeepSeek – What’s the Big Deal?

Lately, there’s been a lot of buzz about DeepSeek, a new AI chatbot that’s been climbing the ranks in Apple’s App Store—actually, it even overtook ChatGPT at one point. That’s a pretty big deal, considering ChatGPT has been one of the most popular AI tools in the world.

So, what’s so special about DeepSeek? And why is it making headlines? Let’s break it down in simple, student-friendly terms (no tech jargon overload, I promise!).

What Even Is DeepSeek?

DeepSeek is an AI chatbot developed by a Chinese startup with the same name. The company was founded in 2023 in Hangzhou, China, and it didn’t take long for them to release their first AI model.

The guy behind it all is Liang Wenfeng, a computer scientist who was originally focused on AI-driven financial trading. Yep, before making an AI chatbot, his company, High-Flyer, used AI for stock market predictions. But at some point, he shifted gears and decided to jump into the generative AI race instead.

One of the craziest things about DeepSeek is that it was built on a super low budget. The company says they developed their model with less than $6 million—which might still sound like a lot, but in the AI world, that’s nothing. By comparison, companies like OpenAI, Google, and Anthropic spend hundreds of millions (sometimes billions!) on their AI models.

So how did DeepSeek pull this off? Well, that brings us to the next interesting part of the story.

How Did DeepSeek Even Compete With ChatGPT?

The development of AI models requires insanely powerful hardware, especially GPUs (graphics processing units). Back in 2022, DeepSeek’s team had 10,000 Nvidia A100 GPUs—a setup that could easily rival major AI labs.

But then, the U.S. put restrictions on selling these high-performance chips to China. This should’ve been a major setback for DeepSeek, but instead of giving up, they found a workaround. They started using Nvidia’s H800 chips, which aren’t as powerful but are still legal to sell in China. And, somehow, they still managed to train a high-quality AI model with these limitations.

The real kicker? DeepSeek’s AI model is actually pretty good. It’s designed to rival ChatGPT and other AI models while being way more efficient in training and data processing. Basically, they figured out how to do more with less—which is why everyone is paying attention.

DeepSeek’s Impact on Nvidia and the Nasdaq

DeepSeek’s emergence didn’t just make waves in the tech community—it also had a huge impact on the stock market, especially for companies like Nvidia.

Nvidia, known for its high-performance GPUs that are essential for training AI models, saw its stock plummet nearly 17%, resulting in a record loss of about $593 billion in market value. This was a massive blow, considering Nvidia’s central role in the AI hardware market.

But Nvidia wasn’t the only one affected. The Nasdaq, which is heavily weighted with tech stocks, dropped 3.1% on the same day. Other tech giants like Broadcom, Microsoft, and Alphabet (Google’s parent company) also experienced significant declines.

Investors are now questioning whether the massive capital expenditures by U.S. tech companies in AI infrastructure are justified, especially when a newcomer like DeepSeek can achieve similar results with a fraction of the resources.

What Can DeepSeek Actually Do?

Okay, so it’s a chatbot—but what makes it different?

1. It’s highly optimized – DeepSeek has been trained in a way that allows it to process and learn faster while using less computing power. That’s a big deal when you consider how expensive AI training is.
2. It’s good at problem-solving – A recent study found that DeepSeek is actually better than most AI models at solving math problems and adjusting its approach when needed. That’s something a lot of AI chatbots struggle with.
3. It’s way cheaper to develop – Since DeepSeek is built at a fraction of the cost of OpenAI’s models, it could mean cheaper AI tools for everyone in the future.

And, most importantly: it’s climbing the app rankings FAST. The fact that so many people are downloading it suggests that there’s real interest in an alternative to ChatGPT—especially one developed outside the U.S.

A Second “Sputnik Moment” In The History

Some experts are saying that DeepSeek’s rise is China’s “Sputnik moment” in AI. If you don’t know what that means, quick history lesson:

In 1957, the Soviet Union launched Sputnik 1, the first-ever satellite. This completely shocked the U.S., because up until that point, they assumed they were ahead in the space race. Suddenly, the world realized that tech leadership wasn’t guaranteed—other countries were catching up.

Now, some people believe that’s what’s happening in AI. For a long time, the U.S. has been dominating AI development (with companies like OpenAI, Google, and Meta leading the charge). But now, China is proving that they can compete—maybe even at a lower cost.

And if that’s true, it could completely change the balance of power in AI.

What’s Next for DeepSeek?

So, what’s the future looking like for DeepSeek? A few possibilities:

• More language support – Right now, AI models are mostly trained in English, but DeepSeek could expand faster in China and other regions by focusing on multilingual capabilities.
• Business applications – AI chatbots aren’t just for casual chats. Many companies use them for customer service, writing, and even coding. DeepSeek might develop business-focused AI tools like ChatGPT Enterprise.
• Advancing AI creativity – AI still struggles with natural conversations and creative writing. If DeepSeek can improve on that, it could make the chatbot even more useful.

But the biggest question is: Can it really compete with ChatGPT in the long run?

For now, DeepSeek has a lot of momentum. It’s breaking into the mainstream, proving that China’s AI scene is advancing fast, and showing that AI development doesn’t always have to cost billions.

Will it be the next big thing? Only time will tell—but one thing’s for sure: AI competition just got a lot more interesting.

Final Thoughts

DeepSeek might not be as famous as ChatGPT yet, but it’s definitely making a name for itself. The fact that it reached the #1 spot in the App Store speaks for itself—people are curious about what this AI can do.

Is it better than ChatGPT? Maybe not yet, but it’s showing that other companies (and countries) are catching up fast. If nothing else, DeepSeek proves that AI innovation is no longer limited to Silicon Valley—and that could shake things up in a major way.

So, if you haven’t checked it out yet… maybe it’s time to see what the hype is about. 🚀