China’s new AI application challenges U.S. dominance

The AI assistant app DeepSeek, created by a Chinese startup, has reached the top of Apple Inc.’s iPhone download charts. This success raises concerns about the United States’ leadership in artificial intelligence within Silicon Valley.

Many view the AI model behind DeepSeek as competitive with those from OpenAI and Meta Platforms Inc. Investor Marc Andreessen called DeepSeek’s assistant “one of the most surprising and impressive inventions.” He highlighted its ability to process and reason through user queries effectively.

Users on Apple’s App Store and Alphabet Inc.’s Android Play Store praise this transparency. The app has topped the free downloads list for iPhones in the U.S. and ranks among the most downloaded productivity applications on the Play Store. According to Bloomberg Intelligence analysts Robert Lea and Jasmine Lyu, China’s strategic goals in AI will yield results in the next 24 months. This progress will further narrow the technological gap with the U.S., despite challenges in the semiconductor supply chain.

Nirgunan Tiruchelvam, head of consumer and internet at Singapore-based Aletheia Capital, expressed concerns about DeepSeek’s product. He stated that it challenges the idea that Silicon Valley’s significant capital expenditures and operational costs are the best way to approach AI trends. He added, “This situation raises questions about the massive resources allocated to artificial intelligence.”