On Monday, the world watched as $1tn was wiped off the stock market in a single day, a huge bonfire kindled by the little-known Chinese artificial intelligence start-up DeepSeek.
Its release of a new AI model, known as R1, upended assumptions about US supremacy in AI and raised the prospect that some in China are learning how to beat Silicon Valley at its own game.
The model can “reason” to solve complex scientific problems and performs at par with leading-edge software from US tech giants, but was apparently developed at a fraction of the price of those models.
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