A security expert warns “Deepseek,” the no. 1 downloaded app on Apple and Google, could pose potential privacy concerns for American users.

The meteoric rise of DeepSeek—the Chinese AI startup now challenging global giants—has stunned observers and put the spotlight on China’s AI sector. Since ChatGPT’s debut in 2022, the country’s tech ecosystem has been in relentless pursuit of homegrown alternatives, giving rise to a wave of startups and billion-dollar bets.

DeepSeek has launched an AI model that was reportedly developed with significantly less computational power than traditional methods. Shares of Nvidia are under pressure amid concerns that DeepSeek's methods may undermine demand for its high-performance GPUs.

DeepSeek's new AI model has sparked concerns about Nvidia's dominance in the AI hardware market, causing a drop in the chipmaker's stock and raising questions about the future of high-performance AI chips.