U.S.-listed shares of tech giants are gaining some lost ground this morning after a China-based startup shocked the AI world with a powerful LLM. Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

DeepSeek’s more efficient approach challenges the conventional wisdom that bigger and more expensive necessarily means better in AI development. The Chinese AI lab DeepSeek recently made waves by releasing their DeepSeek-R1 model as open-source software.

OpenAI has accused Chinese AI start-up DeepSeek of using its proprietary models to train an open-source competitor.

It’s impossible to look at the Chinese artificial intelligence startup DeepSeek’s new AI model without comparing it against OpenAI, the dominant American rival.DeepSeek has touted its latest AI model,

Here's an overview of other leading AI models in China, from Alibaba Cloud's Qwen-2.5-1M to Moonshot AI's Kimi k1.5.

OpenAI said on Wednesday that Chinese AI startup DeepSeek's open-source models may have "inappropriately" based its work on the output of OpenAI's models, an OpenAI spokesperson told Axios. Why it matters: China's DeepSeek has taken the AI industry by storm with its R1 reasoning model that competes with OpenAI's o1,