A shocking Chinese AI advancement called DeepSeek is sending US stocks plunging

 https://edition.cnn.com/2025/01/27/tech/deepseek-stocks-ai-china/index.html

US stocks dropped sharply Monday — and chipmaker Nvidia lost nearly $600 billion in market value — after a surprise advancement from a Chinese artificial intelligence company, DeepSeek, threatened the aura of invincibility surrounding America’s technology industry.

DeepSeek, a one-year-old startup, revealed a stunning capability last week: It presented a ChatGPT-like AI model called R1, which has all the familiar abilities, operating at a fraction of the cost of OpenAI’s, Google’s or Meta’s popular AI models. The company said it had spent just $5.6 million on computing power for its base model, compared with the hundreds of millions or billions of dollars US companies spend on their AI technologies.

That sent shockwaves through markets, in particular the tech sector, on Monday.