The Chinese startup DeepSeek has achieved what recently seemed impossible — its AI assistant has overtaken ChatGPT and become the most popular free app in the U.S. App Store, Sensor Tower reports via Reuters. Why did DeepSeek V3 gain popularity so quickly? First, it’s an open-source AI model that demonstrates excellent reasoning even on complex tasks.
A key feature of the technology is its Mixture-of-Experts architecture, which can simultaneously activate 37 billion parameters out of a total of 671 billion. By comparison, the previous version had 236 billion parameters, but fewer were active — 21 billion. The model was trained on a cluster of 2,000 Nvidia chips — far fewer resources than those used by American companies, which spend tens of millions of dollars. According to Maksym Melnyk of RadASO, DeepSeek V3 quickly climbed the App Store rankings, surpassing ChatGPT in several categories, indicating a serious impact of the Chinese model on the market.
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What’s happening on the global market? Chinese companies are actively developing their own AI solutions, and DeepSeek has become a true breakthrough that has triggered a wave of change. As a result, shares of several cryptocurrency-related companies — such as Riot Platforms, Cipher Mining, Core Scientific, and TeraWulf — saw significant declines of 20–30 percent.
DeepSeek doesn’t plan to stop. They introduced a new model, R1, which prompted a response from OpenAI — it made its o3-mini free for ChatGPT users. The R1 model has already become the most popular on Hugging Face, with over 100,000 downloads at the start of the year. Independent experts from Chatbot Arena, a research project at the University of California, Berkeley, included DeepSeek V3 and R1 in the top 10 best chatbots.
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