The AI landscape was shaken this week as a Chinese startup, DeepSeek, unveiled a powerful new AI model that appears to rival the capabilities of U.S. giants like OpenAI and Google, but with significantly less powerful hardware.

The release of the DeepSeek-R1 model sent shockwaves through the market, particularly impacting Nvidia, a key player in the high-end AI chip market and now the third most valuable company in the world (after today). Nvidia’s stock plummeted, erasing more than half a trillion dollars from the company’s market capitalization, as investors grappled with the implications of DeepSeek’s announcement.

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