DeepSeek AI Surpasses ChatGPT, Impacts NVIDIA's Market Cap with $400 Billion Loss

11 months ago 10
  • DeepSeek AI, a Chinese startup founded by Liang Wenfeng in December 2023, has quickly risen to prominence, becoming the top free app in the Apple App Store and surpassing OpenAI's ChatGPT.

  • The startup's rapid popularity has had a significant market impact, contributing to a staggering loss of nearly $400 billion from NVIDIA's market capitalization.

  • Remarkably, DeepSeek AI was developed with only $6 million in investment, a fraction of the over $100 million that went into creating OpenAI's ChatGPT.

  • In January 2025, the company launched the DeepSeek R1 model, which is designed for tasks similar to other AI chatbots, emphasizing efficiency.

  • However, the startup has faced scrutiny regarding its data handling practices and its acquisition of high-performance NVIDIA chips, especially in light of U.S. export restrictions.

  • Despite its impressive performance, DeepSeek AI notably avoids answering politically sensitive questions, such as those related to Arunachal Pradesh.

  • For users concerned about privacy, DeepSeek AI can be run locally on Windows and Mac, ensuring that data remains private and is not sent to external servers.

  • To enhance user experience, DeepSeek AI can be operated through LM Studio or Ollama, which provide options for local deployment.

  • To use LM Studio, users need to download the software, search for the DeepSeek R1 Distill (Qwen 7B) model, and load it in the chat window.

  • Alternatively, users can utilize Ollama by installing the software and executing specific commands in the terminal to load various sizes of the DeepSeek AI model.

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