OpenAI, the Microsoft-backed artificial intelligence research lab, has seen its chatbot ChatGPT cross a staggering 400 million weekly active users in February, marking a sharp rise from 300 million in December, a company spokesperson told on Thursday.
This milestone cements ChatGPT’s place as one of the most widely adopted AI tools globally, underscoring the increasing reliance on artificial intelligence in workplaces, education, and everyday digital interactions. Additionally, OpenAI revealed that its paying business users have surpassed 2 million, doubling from the last update in September 2024.
The rapid growth highlights the surging demand for AI-driven solutions despite increasing competition in the generative AI space. However, OpenAI’s rise coincides with challenges from emerging players, particularly from China’s DeepSeek, whose latest AI model has been touted as a potential game-changer in the industry.
The growth in ChatGPT’s user base comes just weeks after China’s DeepSeek launched an AI model that it claims can match or even outperform Western AI rivals at a fraction of the cost. This development has reignited concerns about whether the U.S. can maintain its leadership in the rapidly evolving field of generative AI.
DeepSeek, a relatively small AI startup, has quickly gained attention with its competitive model. However, its unexpected surge in demand has led to service outages, suggesting that the company is struggling to keep up with the influx of new users.
Moreover, serious questions have been raised regarding how DeepSeek acquired Nvidia’s H800 AI chips, which are essential for training advanced AI models. These chips were among the high-performance semiconductors banned by the U.S. government from being exported to China, as part of an effort to limit Beijing’s progress in AI and supercomputing. The mystery surrounding DeepSeek’s access to these chips has fueled speculation about potential loopholes or backdoor supply chains.
Despite the rise of DeepSeek and other competitors, OpenAI appears to be gaining momentum rather than losing ground. The company has reported a twofold increase in developer traffic for its reasoning models over the past six months, showing that more programmers and businesses are integrating its AI into their workflows.
Additionally, the adoption of OpenAI’s new o3 model—released in late January—has surged fivefold since its launch. This suggests strong interest in OpenAI’s continuous improvements to ChatGPT’s reasoning, problem-solving capabilities, and overall performance.
Industry analysts attribute OpenAI’s dominance to its strong infrastructure, consistent updates, and deep integration with Microsoft products like Azure and Office 365. Many enterprises have embraced ChatGPT-powered solutions for automating tasks, assisting with customer support, and even generating creative content.
ChatGPT vs. DeepSeek
- Technology and Performance
While DeepSeek has impressed some AI researchers with its capabilities, OpenAI’s ChatGPT remains the gold standard in the field. ChatGPT’s large-scale model updates, such as the GPT-4 Turbo release, have demonstrated better efficiency, improved accuracy, and enhanced contextual understanding compared to most rivals.
However, DeepSeek’s model is reported to be significantly more cost-efficient than OpenAI’s offerings. If DeepSeek can maintain a high level of performance while keeping costs low, it could pose a long-term challenge to OpenAI, particularly in markets where affordability is a key factor.
- Business and User Adoption
OpenAI benefits from deep enterprise integration with Microsoft, which provides it with a steady stream of corporate customers. Many businesses have already woven ChatGPT into their operations, making it difficult for them to switch to an alternative provider.
On the other hand, DeepSeek is still in its early adoption phase and faces challenges in ensuring reliability and stability for large-scale users. The recent service outages suggest that the company may need more infrastructure investments before it can compete at OpenAI’s level.
- Geopolitical and Regulatory Challenges
The AI industry is increasingly shaped by geopolitics. The U.S. government has been tightening restrictions on China’s access to advanced AI chips, fearing that Beijing’s AI capabilities could be used for military or surveillance purposes.
DeepSeek’s access to Nvidia’s H800 chips—despite U.S. sanctions—raises serious concerns. If it is found that a third-party supplier has circumvented export restrictions, it could lead to further tightening of regulations by Washington.
Meanwhile, OpenAI, with its strong backing from Microsoft, enjoys regulatory support in the U.S. and continues to expand its partnerships with American and European companies.
As OpenAI continues its rapid growth, the AI industry is moving into a new phase of expansion, competition, and regulation. Here are some key trends to watch:
- Increased AI Adoption Across Industries
With 400 million weekly active users, AI is no longer a niche technology—it is becoming a core part of everyday business operations. From content generation to financial forecasting, AI is being integrated into workflows across industries.
- The Rise of Cost-Effective AI Models
DeepSeek’s emergence suggests that low-cost AI solutions could disrupt the market. If more companies can develop affordable, high-performing AI models, OpenAI may have to adjust its pricing strategy to remain competitive.
- Stricter AI Regulations and National Security Concerns
As AI technology becomes more powerful, governments will likely impose stricter regulations on AI models, data security, and chip exports. The controversy surrounding DeepSeek and U.S. export bans on AI chips could be a preview of future geopolitical battles over artificial intelligence.
- The Next Wave of AI Innovation
Both OpenAI and DeepSeek will likely push the boundaries of AI capabilities in the coming years. OpenAI has already hinted at upcoming advancements, including multimodal AI models that can process text, images, and even videos seamlessly.
Meanwhile, China’s AI industry is rapidly advancing, and DeepSeek’s initial success suggests that more powerful AI models from China could emerge soon, further intensifying the competition.
