What is DeepSeek? A Game-Changing Chinese AI Startup
In a major shake-up on Wall Street, a new Chinese artificial intelligence company called DeepSeek has emerged as a serious contender to AI giants such as OpenAI and Google. With cutting-edge technology that some experts are claiming rivals that of OpenAI's ChatGPT, DeepSeek is quickly capturing attention, and investors are watching closely to see how this startup will affect the global AI market. But what exactly is DeepSeek, and why is it causing such a stir in the stock market? This article dives into the rise of DeepSeek and answers some key questions investors and tech enthusiasts are asking.
What is DeepSeek?
DeepSeek is a private Chinese AI company that was founded in July 2023 by Liang Wenfeng, a graduate of Zhejiang University. The company aims to build advanced AI models with the potential to disrupt the global tech scene, and it has already made waves with its AI-powered applications. DeepSeek's technology, which has been compared to OpenAI's popular ChatGPT, has garnered attention because of its remarkably low development costs. Unlike major players in the AI industry such as OpenAI, Google, and Microsoft — which have spent billions on AI development — DeepSeek managed to build its technology with just $6 million in funding.
Its debut app has been making headlines due to its groundbreaking AI capabilities, which some industry experts claim may outperform existing models in terms of memory efficiency and learning abilities. However, DeepSeek's low development costs and its ability to achieve these remarkable breakthroughs have raised concerns about whether the company could rival the likes of Nvidia, whose advanced chips are used by many of the biggest names in AI.
Can I Invest in DeepSeek? Does DeepSeek Have Stock?
At present, DeepSeek is a privately held company, meaning it does not have publicly traded stock available for individual investors. Its owner, Liang Wenfeng, funded the startup through his hedge fund and has a reported $8 billion in assets. DeepSeek has yet to announce any plans to go public or to offer shares on stock exchanges. As a result, investors interested in investing in DeepSeek directly are currently unable to do so via traditional stock market routes.
However, investors interested in the Chinese AI sector may still have the option to invest in companies indirectly linked to DeepSeek’s success. For instance, companies like Nvidia, which supply chips that DeepSeek uses, could see changes in their stock price based on the success or failure of DeepSeek’s AI technologies. In the future, if DeepSeek were to go public, it could become an attractive investment opportunity, especially if its app continues to gain popularity.
Does DeepSeek Have an App?
Yes, DeepSeek has released an app that is available for download through Apple's App Store and on its official website. The app, which offers a free AI-powered service, has quickly become popular among users, making it the top download on the App Store as of January 2025. It boasts advanced AI capabilities, including more efficient memory use and better learning algorithms. However, DeepSeek has also faced some technical challenges, including "large-scale malicious attacks" on its servers that have temporarily limited new user registrations.
Despite these setbacks, the company’s app continues to be highly regarded for its performance, and it has attracted considerable interest from users who are curious about AI technology. While DeepSeek's app is available in the U.S., some users have reported issues with signing up, indicating the company may still be working through some technical hurdles as it expands its user base.
Who Owns DeepSeek?
DeepSeek is owned by Liang Wenfeng, a wealthy Chinese entrepreneur and founder of the company. Liang, who has made a name for himself in the AI field, is also a hedge fund manager with an estimated net worth of $8 billion. According to reports, he initially focused on applying AI technology to the financial sector but eventually expanded his efforts into developing AI models for general use. Liang used his hedge fund assets to finance DeepSeek's creation, which led to the development of its current AI app.
Liang’s personal fortune and influence play a large role in DeepSeek’s success, as he has been able to fund the project at a significantly lower cost than most competitors in the AI space. His background in finance and AI has been a driving force behind the startup’s innovative and cost-effective approach to technology development.
Why is DeepSeek Causing Stock Slumps?
DeepSeek’s unexpected rise has sent shockwaves through the stock market, particularly in the AI sector. The company’s ability to develop advanced AI with significantly lower costs has raised questions about the long-term demand for products from established AI players like Nvidia, which manufactures chips crucial for AI development. Investors are concerned that DeepSeek's efficiency could undercut Nvidia’s market share, leading to a slump in Nvidia's stock price, which has already been experiencing volatility. Other companies that depend on AI chips, such as ASML, have also been affected.
As analysts like Wedbush’s Dan Ives point out, DeepSeek’s breakthrough technologies could shift the competitive landscape for AI, leaving investors to wonder whether the current tech stocks, heavily inflated by the AI boom, are truly worth their valuations. In the case of Nvidia and other chip manufacturers, the emergence of DeepSeek is a reminder that the AI market remains unpredictable, and disruptions may come from unexpected players.
Related: DeepSeek AI Launch Causes Global Tech Stock Slump: What’s Next for AI?
Related: Is Now the Time to Buy Nvidia Shares? Navigating Market Losses and AI Competition
DeepSeek's Global Impact
DeepSeek’s rapid rise underscores the growing significance of AI innovation outside the U.S. While companies like OpenAI, Google, and Microsoft have dominated the AI sector for years, Chinese startups like DeepSeek are now stepping into the spotlight with lower-cost alternatives that challenge the established players. As the company’s app continues to gain traction and its AI capabilities evolve, DeepSeek could emerge as a major force in the global AI market.
Investors and tech enthusiasts alike are eagerly watching to see how DeepSeek's journey unfolds and whether it can maintain its momentum in a competitive space dominated by big-budget companies. With continued innovation and potential for further breakthroughs, DeepSeek may one day rival the likes of OpenAI, reshaping the landscape of artificial intelligence development in ways we can’t yet predict.
Conclusion
DeepSeek’s rise is a testament to how quickly the tech world is evolving. With its efficient AI models and groundbreaking app, DeepSeek is proving that sometimes, less is more in the world of artificial intelligence. As the company continues to grow, it will undoubtedly shape the future of the AI sector, but only time will tell if it can sustain its success in the face of fierce competition from U.S.-based tech giants.
