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7 Implications of DeepSeek’s Victory Over American AI Companies

The Chinese Whale has caused a tsunami in the US

Alberto Romero
17 min readJan 27, 2025
DeepSeek #1 in the App Store

DeepSeek, the hottest AI startup right now, has reached the number one spot on the App Store, surpassing even ChatGPT. I guess you guys are asking me to write another article on the Chinese whale.

For last week’s deep dive, I examined DeepSeek’s first AI reasoning model, R1, and its interesting sibling, R1-Zero. It makes for a rather technical read — I wouldn’t have imagined that the name DeepSeek itself would become so extremely viral in a matter of days. A genuine “ChatGPT moment” for the Chinese AI industry. Yet, the tsunami was felt especially in the West. There’s a lot at stake here: DeepSeek challenges assumptions about who leads AI innovation. It jeopardizes billion-dollar investments and threatens to tear the bottom out of very deep pockets. Not everyone has taken it well.

People — my only shareholders — are eager to understand what’s happening so I will provide. There’s too much noise and not that many people have been following DeepSeek closely enough to know what’s going on and put it in perspective. How did a Chinese startup suddenly rise to the top? Wasn’t the US supposed to be months ahead? What happens next? Will the AI bubble pop? Will the markets crash? Has America lost? Social media is…

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Alberto Romero
Alberto Romero

Written by Alberto Romero

AI & Tech | Weekly AI Newsletter: https://thealgorithmicbridge.substack.com/ | Contact: alber.romgar at gmail dot com

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