Investors on Monday finally woke up to the success of a relatively small Chinese player in the AI world. Spooked by a model reportedly trained on a miniscule budget—and from a country that was supposedly behind the U.S. in AI capabilities—investors dumped shares across the entire tech sector, including those of Nvidia, ASML, and Alphabet.
Last week, DeepSeek unveiled its R1 model, which, the startup claims, meets, if not exceeds, performance from OpenAI’s o1 model released last year. (o1 is designed to tackle reasoning and math problems.) DeepSeek has introduced its models to the public, and reviewers are impressed with their ability to handle tasks like coding and reasoning.
