DeepSeek, a Chinese AI startup, has limited new signups to people with mainland China phone numbers following the surge in global interest that disrupted their chatbot services.
This new AI chatbot is much cheaper than those from companies like OpenAI and Meta, which have attracted a lot of attention worldwide.
The application became one of the most downloaded on Apple and Android. However, the high demand led to outages, with the longest one recorded since the company started tracking service availability. Due to this issue, DeepSeek has had to temporarily limit access to manage the pressure.
DeepSeek’s AI models, created for just $6 million, are seen as a challenge to big companies like GPT-4. As a result, the market cap for AI coins fell by 7.66%, sparking some analysts to suggest this might be a good time to buy.
DeepSeek’s success is highlighting China’s growing influence in the field of artificial intelligence. Even though China faces restrictions on advanced AI chips due to political issues, DeepSeek was able to create a competitive chatbot using less powerful hardware.
Meanwhile, the popularity of its chatbot has caused a drop in the market for AI-related coins like NEAR, ICP, RENDER, and FIL, which lost around 8-10%.
The company’s efficient use of resources has sparked discussions about the global AI industry and the growing competition for U.S. tech firms. DeepSeek’s low-cost approach stands in contrast to the huge investments made by American companies.
For example, Meta plans to spend $65 billion on AI this year, and OpenAI’s Sam Altman believes the AI industry may need trillions of dollars for high-demand computing infrastructure. DeepSeek’s success is challenging the traditional dominance of American tech companies in the AI space.
Also Read: Near Aims to build AI with More Parameters than DeepSeek
