“Honestly, I don’t feel it’s a competitor to me.”
This was the response from “ChatGPT” when we asked it a question at 11:20 PM Washington time on Monday about the Chinese app “DeepSeek.”
Less than 24 hours after the launch of the Chinese AI application, it faced technical issues that rendered it inoperable for new users.
The new app attributed the technical glitch to “widespread malicious attacks.”
Ahmed Banafa, a professor of network security at San Jose State University in California, considers “DeepSeek” belonging to a Chinese startup of the same name, to be a smaller version of the “ChatGPT” application developed by the American company OpenAI.
“When you buy a remote control that has 40 buttons, that’s ChatGPT, but most people only use four or five buttons, which is what the Chinese app has done,” Banafa said in an interview with Alhurra. “DeepSeek only focused on market needs, making its free service reasonably good.”
The Chinese app, a version of ChatGPT, can assist users in travel planning, developing marketing strategies, translation, and chatting in various languages, including Arabic.
A New Startup
In December 2024, the company “DeepSeek,” based in Hangzhou, eastern China, unveiled “DeepSeek V3,” a massive language model containing 671 billion parameters.
In AI terms, the more parameters there are, the greater the program’s or model’s ability to process complex patterns.
This model achieved performance equivalent to leading models like those offered by OpenAI and Meta, but at a lower cost, estimated by the company to be $5.58 million.
Banafa said that “AI needs three things: information, chips, and algorithms.”
“If you find a way to reduce costs in chips and components such that you achieve similar results, you will improve the algorithms, leading to the desired outcome,” he said.
The network security professor pointed out that the app relies on “open-source resources,” unlike ChatGPT.
He explained that “the app is a program based on information open to everyone, and engineers and programmers around the world can access the code and provide advice to improve the algorithms.”
Banafa said that ChatGPT has a certain level of creativity, unlike DeepSeek.
The Chinese application answers specific questions in a certain manner, even though it tries to mimic the American app in appearance.
Nevertheless, Banafa believes it will impact ChatGPT due to a lack of alternatives.
The costs for companies wanting to rely on an AI platform will be significantly lower when using the Chinese DeepSeek.
Banafa expresses his concerns regarding privacy, in addition to the information of the companies that will use it, as their data may be held captive by the app.
The Chinese government’s interest
American media outlets have warned against extensive use of the app, fearing exposure to misleading information, especially if not verified.
There has also been similar concern regarding biases and a lack of accuracy accompanying the rise of ChatGPT and similar programs.
AI models are trained on vast amounts of data, which may not necessarily be objective, and this alone raises concerns.
Experts have also warned against sharing private and sensitive data with “DeepSeek V3,” as it is unclear how it is handled and whether it is sufficiently protected.
Banafa stated that DeepSeek is politicized when asked about certain matters, especially those relating to China or the interests of its communist government.
The Chinese company has garnered significant attention from Beijing and technology industry leaders. Its CEO and founder, Liang Wenfeng, had met with high-ranking officials, including Chinese Premier Li Qiang.
Like other AI systems, DeepSeek can be used to create fake content (Deep Fake), spread propaganda, or automate harmful activities.
The Losses of companies
Media and international agencies have confirmed that many American technology companies have lost varying percentages in the stock markets, with losses extending to European countries and Japan.
The reason: the rise of the Chinese app DeepSeek and the information circulating about its low cost and availability to everyone.
Monday’s shockwave pushed stocks of companies like Nvidia and Oracle to plummet sharply.
The Nasdaq composite index fell by 2.43%, while the S&P 500 index decreased by 1.8%, and shares of chipmaker Nvidia dropped more than 13%.
Microsoft’s stock fell by 3.8%, while Meta Platforms' stock dropped by 3.1% at the beginning of trading, before rising again later, while Google’s stock fell by 1.9%.
The AI frenzy has led to a wide influx of capital into stock markets over the past 18 months, as investors bought shares in technology companies.
Dan Ives, an economic analyst at Wedbush Securities, said “While the technology of DeepSeek is impressive, the American technology sector is far ahead of China in terms of infrastructure.”
U.S. President Donald Trump considered the Chinese app a “wake-up call.”
Trump said during a meeting with Republican House members in Miami on Monday that “the technology of the Chinese company should serve as an incentive for American companies.”
