The Chinese artificial intelligence firm DeepSeek has rattled markets with claims its latest AI model performs on a par with those of OpenAI, despite using less advanced, more energy efficient computer chips.

Have American tech companies completely misunderstood what they should do with Large Language Models? It certainly looks that way.

A Chinese artificial intelligence startup is rattling Silicon Valley and Wall Street after it demonstrated AI models on par with OpenAI’s — for a fraction of the cost and energy.

Less than a week after the new artificial intelligence platform DeepSeek sent investors spiraling in the United States, another AI model has popped up in China, claiming to be even better.

As Chinese AI company DeepSeek gains traction in the tech world amid ongoing US-China trade tensions, OpenAI suspects that DeepSeek may have utilized ChatGPT data to develop its own cost-effective AI models.