A Chinese startup, DeepSeek, has disrupted the global tech industry with its new AI model, DeepSeek-R1, rivaling US giants like Google and OpenAI. Despite spending under $6 million and using less advanced chips, DeepSeek’s model matches the capabilities of ChatGPT and Gemini.
The breakthrough caused Nvidia shares to plummet by 17%, wiping $600 billion off its market value, while Google and Microsoft also saw stock declines. US President Donald Trump called this a wake-up call for American tech to stay competitive, as he announced a $500 billion AI initiative.
Founded in late 2023 by Liang Wenfeng in Hangzhou, DeepSeek’s innovation challenges assumptions about the necessity of massive budgets for cutting-edge AI. Experts suggest the development may redefine global AI leadership.
