Chinese AI startup DeepSeek experienced significant website outages on Monday, just as its AI assistant became the top-rated free app on Apple’s App Store in the United States. According to the company’s status page, the outages, the longest in about 90 days, were caused by issues with its application programming interface and users’ difficulties logging into the website. The problems were swiftly resolved, but the timing highlights the strain caused by the app’s surging popularity.
Powered by the DeepSeek-V3 model, the AI assistant has rapidly gained traction among U.S. users since its release on January 10. According to app analytics firm Sensor Tower, DeepSeek’s rise has made waves across Silicon Valley, challenging assumptions about U.S. dominance in AI innovation and raising questions about the effectiveness of export controls aimed at curbing China’s advancements in artificial intelligence.
A New Contender in the AI Race
The DeepSeek-V3 model, described by its creators as a top-tier open-source AI rivaling even the most advanced closed-source models, has become a game-changer. Its success underscores a shifting narrative in global AI development, with a Chinese startup capturing the attention of a traditionally U.S.-centric industry.
Since 2021, the Biden administration has broadened export bans to prevent advanced chips from being used to train AI models in China. Despite these restrictions, DeepSeek researchers revealed in a paper last month that they trained the DeepSeek-V3 model using Nvidia’s H800 chips, spending less than $6 million. This claim, while disputed, has sparked debate among U.S. tech executives about the efficacy of these export controls. The use of less powerful chips and relatively modest training costs suggests a new path to AI excellence, challenging the notion that cutting-edge AI requires access to the most advanced hardware.
A Rising Star from Hangzhou
DeepSeek, founded in 2023 in Hangzhou, China, has quickly distinguished itself in a competitive landscape. The rise of Chinese AI models began with Baidu’s release of the first large-language model, and since then, numerous companies have entered the fray. However, DeepSeek is the first to receive widespread acclaim from the U.S. tech community for its performance, with many experts comparing it favorably to leading U.S.-based models.
DeepSeek’s achievements reflect a broader trend of innovation in China’s tech ecosystem, even amid geopolitical tensions and restrictions. The startup’s ability to make a global impact in such a short time has left industry leaders reevaluating assumptions about the AI landscape and the role smaller players can play in shaping the future.
A Wake-Up Call for Silicon Valley
The growing influence of DeepSeek highlights a shift in the global AI race and raises critical questions for the U.S. tech industry. Can existing export controls effectively limit China’s technological progress, or will startups like DeepSeek continue to find ways to innovate and compete on the global stage? As the dust settles from Monday’s outages, one thing is clear: DeepSeek’s ascent is a story that will continue to shape the conversation around AI innovation and international competition.
