DeepSeek landed like a thunderclap in January 2025, when its R1 reasoning model briefly dethroned ChatGPT as the most downloaded free app on the iOS App Store in the United States. Built by a Hangzhou-based AI lab backed by Chinese hedge fund High-Flyer, it claimed to match frontier AI performance at a fraction of the development cost. That claim sent Nvidia's stock tumbling 17% in a single session and sparked a global conversation about who was actually winning the AI race.
Since then, DeepSeek has grown to roughly 97 million monthly active users and released multiple model generations, most recently the V4 family in April 2026. Its API pricing stands out: the V4 Flash model starts at $0.14 per million input tokens, cheaper than most "lite" tier models from OpenAI and Google yet competitive on coding, math, and reasoning benchmarks. The open-weight licensing under MIT also means teams can self-host the models and sidestep per-token costs entirely at scale.
