These innovations led to the launch of DeepSeek, a startup that released its R1 AI model earlier this year.
The model demonstrated strong performance, rivaling established AI systems like ChatGPT, yet reportedly cost less than $6 million to develop.
DeepSeekâs open-source release shook the AI market.
On the day of the announcement, Nvidiaâs stock dropped 17%, erasing about $600 billion in market valueâhighlighting the disruptive potential of nimble startups in a volatile AI landscape.
While DeepSeekâs future is unclear, but its rise highlights the serious competition big AI firms face.
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