A Chinese artificial intelligence startup, DeepSeek, has achieved a significant milestone by surpassing ChatGPT to become the top-rated free app on Apple’s App Store in the United States. 

According to a report by Reuters, this accomplishment marks a breakthrough for the Hangzhou-based company, highlighting its potential to rival leading global AI models.

DeepSeek’s AI Assistant, powered by its proprietary DeepSeek-V3 model, has gained substantial traction among US users since its launch on January 10, 2025. The startup claims that DeepSeek-V3 not only outperforms open-source models but also matches some of the most advanced closed-source AI models globally. This success underscores the growing influence of Chinese AI technologies in a market long dominated by US companies.‍

A Challenge to US AI Dominance

The rapid rise of DeepSeek has sparked debates within Silicon Valley regarding US leadership in AI and the effectiveness of Washington’s export controls. 

The Biden administration has implemented strict measures since 2021 to limit China’s access to advanced semiconductor chips essential for training AI models. Despite these restrictions, DeepSeek revealed in a research paper last month that it used Nvidia’s H800 chips, reportedly less powerful than the most restricted chips, to train its AI model at a cost of under $6 million.

Although some have disputed these claims, the relatively low-cost training process and the use of less advanced chips have prompted US tech executives to question the impact of the export bans on curbing China’s AI advancements.‍

A Rising Star in the AI Landscape

Founded in 2023 in Hangzhou, DeepSeek emerged as part of a wave of Chinese companies developing large-language models following Baidu’s release of the first Chinese AI model. While numerous Chinese tech giants and startups have since launched their own AI systems, DeepSeek is the first to receive widespread recognition from the US tech community for potentially surpassing cutting-edge US AI models.

The app’s rise to prominence on the App Store signals growing acceptance of Chinese AI innovations in the global market. It also serves as a reminder of the shifting dynamics in the AI industry, where smaller startups can compete with established players on the strength of innovation and efficiency.