(ABC 6 News) — A Chinese AI app took the number one spot on the Apple app store on Monday, causing stocks to take a big hit.

The app, DeepSeek, beat out ChatGPT from U.S.-based OpenAI.

The startup has seen a rise in popularity since its release earlier this month, especially after launching a free assistant last week.

The markets are now dipping because of it, particularly tech-heavy Nasdaq.

DeepSeek says it uses less expensive chips for its model compared to other leading AI companies that are spending tens of billions on investments.