DeepSeek proves that Silicon Valley can't monopolise AI innovation, according to a European AI entrepreneur.

Muj Choudhury, the CEO and co-founder of British voice processing startup RocketPhone, welcomed DeepSeek's rapid rise. He hopes the Chinese company signals a shift in the balance of AI power.

“AI development has long been dominated by Silicon Valley's powerful VC firms, which wield immense influence by pouring vast sums into the technology and shaping its trajectory,” he said.

“In this landscape, an outsider like DeepSeek breaking through is not just impressive. It's necessary. The industry needs challengers to drive real innovation and prevent AI's future from being monopolised by a handful of players.”

That handful has certainly been shaken by DeepSeek's emergence. The Chinese startup's AI assistant has overtaken ChatGPT to reach the top spot on the Apple App Store's free app rankings.

The company's open-source models have also stunned the market. In tests, they've outperformed rival models from OpenAI and Meta — at just a fraction of the operating costs.

The advances have shaken the stock market. According to Choudhury, they've proven that AI innovation isn't “dictated” by access to supercomputers or Silicon Valley funding.

Fresh from raising $10.5mn for his own startup, Choudhury has growing optimism for Europe's AI scene.

He wants DeepSeek to inspire the continent's tech sector, which is struggling to commercialise AI innovations.

“For European startups, who have historically excelled at building focused, efficient solutions rather than chasing scale at all costs, DeepSeek's rise suggests there's room for strategic players who can execute well without massive capital outlays,” he said.

“Perhaps this shift will finally allow us to focus on what truly matters: building practical AI systems that solve real enterprise problems and deliver tangible business value, rather than chasing the next viral consumer app.”