DeepSeek, a new AI model from China, has captured attention in the UAE for its ability to provide responses that users describe as “more natural” compared to its competitor, ChatGPT. However, its launch faced challenges when a large-scale cyberattack hindered many residents from downloading the app on Monday. Despite this setback, DeepSeek’s claims of using less data and potentially rivaling American AI firms have sparked significant interest.

The company reported that it spent only $5.6 million to develop its chatbot, which quickly became the top-rated app on Apple’s US app store. This success has led to a market sell-off affecting major companies such as Nvidia, Microsoft, and Meta. Sam Altman, CEO of OpenAI, referred to DeepSeek as an “impressive model,” while former US President Donald Trump labeled it “a wakeup call for our industries.”

Ajman-based student Iffah Sheeraz shared her experience with both AI tools, stating, “I’ve been using ChatGPT for months and it’s been reliable for everyday tasks. But after trying DeepSeek, I have noticed some interesting differences.” She noted that DeepSeek’s responses avoid the repetitive “AI tone” often associated with ChatGPT, leading to a more human-like conversational flow. Additionally, she highlighted the “Deepthink R1” feature, which provides insight into the AI’s reasoning process, adding significant value for users tackling complex questions.

Dubai resident Kathrynne Nicole Alday expressed her interest in DeepSeek while researching AI tools. She found it to be more knowledgeable and capable of handling intricate tasks effectively. However, she faced registration issues due to the cyberattack, receiving a message that read, “Due to large-scale malicious attacks on DeepSeek’s services, registration may be busy. Please wait and try again.” Alday experienced a delay of about three hours in receiving her authentication code but remained optimistic about the platform’s potential to enhance her workflow.

Jacob Falkencrone, chief investment strategist at Saxo Bank, commented on DeepSeek’s impact on the AI investment landscape. He noted that the model’s performance matches that of US leaders like OpenAI while costing only five to ten percent of their expenses. “Investors are worried about AI infrastructure spending and price wars. But while the short-term market reaction seems concerning, the long-term outlook for AI remains robust,” he explained. Falkencrone emphasized that innovations that reduce costs and broaden access could spark the next growth wave in the AI sector.

Manuel Villegas, a digital assets analyst at Julius Baer, remarked that it is premature to determine whether DeepSeek is a “true game changer.” He highlighted the innovative aspect of DeepSeek’s model, which leverages the Mixture of Experts (MoE) architecture, achieving this at a low cost, in contrast to the West’s strategy of increasing spending without optimizing frameworks.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, raised critical questions about DeepSeek’s capabilities and its claim of developing a competitive model for under $6 million, especially since US models can cost several hundred million dollars. She pointed out that while DeepSeek may have produced a cheaper alternative, it is essential to see if the model can be effectively integrated into other applications. Ozkardeskaya asserted that if DeepSeek can deliver on its promises, it could enable companies worldwide with limited budgets to incorporate AI into their operations.