New Chinese AI Brings Fierce Competition to the West

China’s new DeepSeek shocked Western markets, though questions remain about some of their claims.

Author

Anthony Constantini
February 01, 2025

What’s happening: A Chinese firm, DeepSeek, shocked the West this week by announcing it had created a new artificial intelligence (AI) model for only $6 million and without using the American company Nvidia’s computer chips. The news sent Nvidia’s stocks tumbling, losing $600 billion — the largest one-day drop in US history.

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