DeepSeek’s success, they said, isn’t a bad thing for the domestic industry but it is “a wake-up call to U.S. AI companies obsessed with gargantuan (and expensive) solutions. ‘Doing more with less’ underpins the approach taken at several Chinese state-funded labs.”

In what President Donald Trump called a "wake-up call" for U.S. tech companies (implicating members of his innermost circle, as well), DeepSeek has upended the current market and introduced a new more cost effective alternative to the world of advanced reasoning AI.

DeepSeek has Silicon Valley in awe and investors in a frenzy.The Chinese artificial-intelligence upstart has shot to prominence after saying it had trained high-performing AI models cheaply, without the most advanced chips.

DeepSeek, a Chinese artificial-intelligence startup that’s just over a year old, has stirred awe and consternation in Silicon Valley after demonstrating AI models that offer comparable performance to the world’s best chatbots at seemingly a fraction of their development cost.

The Chinese AI firm’s new model is rattling the tech industry and the stock market. Here’s some of the smart commentary on why.