SUQIAN, CHINA – JANUARY 28, 2025 – A illustration photo shows DeepSeek and Nvidia logo on January … [+]
DeepSeek’s Rapid Rise in AI and Big Tech Disruption
On January 27, 2025, China-owned DeepSeek, an AI research and technology company comparable to OpenAI and Anthropic’s Claude, topped the Apple App Store’s Top Free Apps chart just days after releasing its flagship model, R1.
DeepSeek’s models have outperformed those of OpenAI and Anthropic in some third-party tests, while operating at a fraction of the cost by using fewer high-end chips.
Following DeepSeek’s rise, the stock prices of AI giants Nvidia, Oracle, and Microsoft dropped by 16%, 10%, and 4%, respectively.
Meta’s Response: A ‘Cheap and Dirty’ AI Model or a Real Threat?
According to Scott Galloway, a business analyst and co-host of the Pivot podcast, Meta’s stock price was expected to drop. However, it has remained steady as the company sets up several ‘war rooms’ to analyze DeepSeek. Meta’s chief AI scientist, Yann LeCun, has argued that DeepSeek’s approach is a ‘cheap and dirty’ version of AI, while U.S. companies focus on more advanced solutions. But how much will that distinction impact consumer behavior?
A Temu-Like Strategy: What It Means for AI and Market Disruption
DeepSeek has adopted a strategy similar to that of Chinese e-commerce giant Temu, which offers fast fashion—arguably lower-quality products—at accessible price points. In 2024, Temu captured a 17% share of the U.S. e-commerce market within the discount store category, becoming the no. 1 most downloaded app on the US app store.
As Deepseek gains traction in the U.S. market, what should music industry players be aware of? Lower-cost AI solutions could make DeepSeek an attractive option for startups building tools to optimize workflows and reduce inefficiencies within the music business. As the industry increasingly depends on emerging technologies, DeepSeek’s advancements may reshape how music businesses operate.
From TikTok to DeepSeek: What’s at Stake for Music and AI?
Over the past year, the music industry has experienced whiplash—from looming TikTok bans. A social platform that has become embedded in the music business, fueling discovery while expanding licensing opportunities and driving revenue for both new and legacy artists. As businesses grow increasingly reliant on AI infrastructure, the risk of regulatory crackdowns poses challenges not just for music stakeholders, but for the broader economy, as the very platforms they depend on could be restricted or removed.
