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China's new AI is already shaking up the tech industry

DeepSeek's new R1 model is already changing the way people are looking at AI.

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China's new R1 AI by company DeepSeek appears to have completely altered the way big tech is looking at AI. Offering comparative functionality with something like ChatGPT but at a fraction of the cost, DeepSeek's new model is already making waves.

As per PCGamer, DeepSeek's revelation has caused the share price of Nvidia to fall by 17%. Hundreds of billions of dollars are being poured into AI development, while DeepSeek claims it was able to create its model with little more than $5 million.

This is a big problem for big tech in the West, as they'll now need to adapt and figure out how to do what DeepSeek has done at a fraction of the cost. Nvidia stock is unlikely to drastically fall off much further, but the sharp decline will be noticed by those at the top, who will be wondering just how they can make headlines like DeepSeek is doing right now.

China's new AI is already shaking up the tech industry
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