The Chinese start-up used several technological tricks, including a method called โmixture of experts,โ to significantly reduce the cost of building the technology.
An apparent breakthrough in efficiency from the Chinese start-up did not make techโs biggest companies question their extravagant spending on new data centers.
DeepSeekโs success embodies Chinaโs ambitions in artificial intelligence. But it could also threaten the grip on power the nationโs leaders hold.
Since the Chinese companyโs chatbot surged in popularity, researchers have documented how its answers reflect Chinaโs view of the world. Some of its responses amplify propaganda Beijing uses to discredit critics.
Venture capitalists plowed money into A.I. start-ups like OpenAI and Anthropic. But the rise of the Chinese A.I. start-up DeepSeek has called that funding frenzy into question.
The tech industry has had an insatiable appetite for Nvidiaโs chips over the last two years. But the feast may be over sooner than many had expected.
Stiffer competition for the tech giants at the forefront of the artificial intelligence boom prompted investors to reassess the companiesโ sky-high valuations.
The fast-growing popularity of the Chinese artificial intelligence software hit shares in tech giants like Nvidia, as Silicon Valley worried about what comes next.
The company built a cheaper, competitive chatbot with fewer high-end computer chips than U.S. behemoths like Google and OpenAI, showing the limits of chip export control.