Here’s How US AI Giants Are Responding to DeepSeek’s Disruption – BitRss

A small Chinese startup just forced America’s biggest tech companies to rethink how they build artificial intelligence.

DeepSeek’s release of its R1 model, which reportedly matches or exceeds the capabilities of U.S.-built AI systems at a fraction of the cost, triggered a massive sell-off in tech stocks that erased nearly $600 billion from Nvidia’s market value alone.

The shockwaves hit the US tech sector in the gut, with leaders in the industry hurrying to analyze how DeepSeek achieved such results.

Though there are still open questions, after analyzing the open-source code, the consensus, for now, is that Chinese developers are better at building efficient models. And the tech titans of AI put on their smiley faces and looked at the bright side, embracing the notion that any advance in AI was good for the industry.

OpenAI’s Sam Altman acknowledged the model’s impressive performance while promising to accelerate the release of “better models.”