DeepSeek, a burgeoning Chinese startup, has captured global attention with its open-source AI model, V3, propelling it to become the second most popular AI chatbot on the internet. The innovative model reportedly required only $5.5 million to develop, a stark contrast to the billions spent by American counterparts. This cost-effective approach has stirred interest and led to a surge in traffic, marked by an impressive 813.3% week-over-week increase in the U.S. by January 31.
Surge in Popularity
DeepSeek’s web-based traffic skyrocketed to 49 million visits last Tuesday, reflecting a 614% increase from the previous week. Such popularity has positioned DeepSeek ahead of Google’s Gemini and Character in terms of traffic, causing ripples in the U.S. tech market and contributing to a decline in tech stocks. The model’s appeal lies in its similarity to ChatGPT but with the added advantage of being freely downloadable and operable on a local server. This accessibility has made it a preferred choice for many enterprises seeking customizable AI solutions.
Despite its success, DeepSeek faces challenges concerning privacy and censorship policies, raising concerns among users. This scrutiny may prompt some users to explore alternative platforms. Additionally, the platform encountered a Distributed Denial of Service (DDoS) attack on Monday, leading to temporary restrictions on new user registrations.
The company’s daily visits surged to 4.9 million in the U.S. on January 28, culminating in a global traffic count of 29.2 million visits last Friday. A month ago, DeepSeek was relatively unknown with about 300,000 daily visits, but it experienced a dramatic increase to 33.4 million by January 27. Currently, DeepSeek is averaging around 10 million visits per day globally, mirroring the traffic figures of other notable AI platforms.
However, DeepSeek’s impressive growth still trails behind Microsoft’s Bing.com, which incorporates OpenAI-powered Copilot AI into its search engine. This underscores the competitive landscape in the AI domain as companies strive to enhance their capabilities and user base.
What The Author Thinks
DeepSeek’s rise highlights a significant shift in the AI landscape, demonstrating that innovative and cost-effective approaches can challenge the dominance of established players. While privacy concerns and technical challenges present hurdles, the company’s rapid growth underscores the vast potential of open-source models in democratizing AI technology. DeepSeek’s trajectory serves as a reminder that accessibility and innovation can reshape market dynamics, potentially leading to more inclusive and diverse technological advancements.
Featured image credit: FMT
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