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DeepSeek surges to #1 on Apple app store, shakes up US tech stocks

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DeepSeek, the new kid on the artificial intelligence (AI) block, has shot to the top of Apple’s App Store in terms of downloads, sending fears up the Silicon Valley with its sudden popularity.

DeepSeek’s large language models (LLMs) are seen to be comparable with those of market leaders OpenAI and Meta. The company’s claim that it cost a fraction to train and develop these competitive AI models shook up global markets.

All three main indexes on Wall Street fell Friday, with the S&P 500 off a record high on profit-taking and as tech firms took a hit following the launch of the DeepSeek AI programme.

ETtech Explainer: What is DeepSeek, China’s competitor to OpenAI?

Tech and chip firms were among the big losers in Tokyo as the Nikkei ended the morning in negative territory. SoftBank, which is a key investor in Trump’s AI project Stargate, lost more than 6%.

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Chinese tech firms linked to DeepSeek, such as Iflytek Co., surged on Monday, while chipmaking tool makers like Advantest Corp. slumped on the potential threat to demand for Nvidia Corp.’s AI accelerators. US stock index futures also tumbled amid concerns that DeepSeek’s AI models may disrupt US technological leadership.

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