market adoption decline
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DeepSeek Faces Adoption Crisis: Hallucination Trouble Slashes Usage From 50% to 3% DeepSeek’s User Exodus: AI Hallucinations Trigger 94% Usage Collapse Struggling With Hallucinations, DeepSeek Sees User Base Plummet From 50% to 3% Share
DeepSeek’s launch of its next-gen AI model R2 faces major delays due to data and hardware constraints, with user adoption plummeting to 3% from 50% earlier this year. The Chinese AI firm struggles to secure sufficient high-quality training data under domestic restrictions and faces GPU shortages, causing reliability issues like hallucinations. Despite operational challenges, DeepSeek has disrupted the global AI market through its open-source strategy, engaging over 1 million developers by offering accessible models. While its current setbacks highlight scaling difficulties, the company has already reshaped competitive dynamics against Western giants.
