DeepSeek AI is a new open source AI model out of China that claims to be outperforming OpenAI, Google and Meta.

Chinese AI start-up DeepSeek has sent shockwaves through the tech world with the release of their new model, positioning itself as a formidable competitor to American tech titans like OpenAI, Google,

DeepSeek has Silicon Valley in awe and investors in a frenzy.The Chinese artificial-intelligence upstart has shot to prominence after saying it had trained high-performing AI models cheaply, without the most advanced chips.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

DeepSeek's new AI model has sparked concerns about Nvidia's dominance in the AI hardware market, causing a drop in the chipmaker's stock and raising questions about the future of high-performance AI chips.

Yet many in Silicon Valley believe the broad sell-off is an overreaction to DeepSeek’s latest model, which they argue could spur wider adoption and utility of AI by radically lowering the technology’s cost,