DeepSeek, a Chinese AI startup, has developed the R1 model, a ChatGPT-like AI system that operates at a fraction of the cost of its U.S. counterparts. This advancement has led to significant market reactions, with U.S. tech stocks experiencing notable declines. Nvidia, for instance, saw a nearly 17% drop, equating to a loss of approximately $588.8 billion in market value. The broader tech-heavy Nasdaq index also fell by 3.1%. DeepSeek's ability to create cost-effective AI models using less advanced chips has raised concerns about the competitive edge of American tech companies in the AI sector. Industry leaders are now reassessing their strategies in light of this development. Click here to read more.