**Advertisement** SKIP ADVERTISEMENT You are currently viewing a preview of this article as we confirm your access. The complete article will load once access is verified. **What You Should Know About DeepSeek and Its Disruption of A. I. ** How did a relatively obscure Chinese startup create turmoil in the markets and instill fear in U. S. tech giants?Here’s what to understand. **Jan. 27, 2025 Updated 6:14 p. m. ET** Tech stocks faced a sharp decline. Major corporations like Meta and Nvidia found themselves inundated with questions about their prospects. Tech leaders took to social media to voice their concerns. All of this upheaval stemmed from a little-known Chinese A. I. startup named DeepSeek. On Monday, DeepSeek made headlines globally by showcasing its achievement of developing a remarkably powerful A. I. model at a cost significantly lower than what many experts deemed feasible. This raised pressing questions about the competitiveness of U. S.

companies in the A. I. landscape. Marc Andreessen, a prominent venture capitalist, described DeepSeek as “AI’s Sputnik moment” in a social media post on Sunday. How could a startup that was largely unknown have such a profound impact? **What is DeepSeek?** DeepSeek is a startup founded by High-Flyer, a Chinese stock trading firm. Its mission is to develop A. I. technologies similar to OpenAI’s ChatGPT and Google’s Gemini. By 2021, DeepSeek had sourced thousands of computer chips from U. S. -based Nvidia, essential for building powerful A. I. systems. In China, the startup is recognized for attracting young, talented A. I. researchers from leading universities, offering lucrative salaries and opportunities to engage in pioneering research projects. Both High-Flyer and DeepSeek are led by Liang Wenfeng, an enterprising figure in China. Thank you for your understanding as we confirm your access. If you are in Reader mode, please exit and log in to your Times account or subscribe for full access to The Times. Thank you for your understanding as we confirm your access. Already a subscriber?Log in. Want all of The Times?Subscribe. **Advertisement** SKIP ADVERTISEMENT