"In our view this is a correction and not the start of a sustained bear market," Goldman Sachs said. DeepSeek sparked a $1 trillion market rout on Monday.

In fact, this is a shortsighted view that misses the significant benefits that DeepSeek represents for the U.S. economy and for businesses worldwide. What’s exciting is that the

A Chinese company’s cut-rate computing solution has upended the tech world, with companies, investors and even the U.S. government trying to understand what it means for the future.

Some AI researchers hailed DeepSeek’s R1 as a breakthrough on the same level as DeepMind’s AlphaZero, a 2017 model that became superhuman at the board games Chess and Go by purely playing against itself and improving, rather than observing any human games.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

The startup DeepSeek was founded in 2023 in Hangzhou, China and released its first AI large language model later that year. Its CEO Liang Wenfeng previously co-founded one of China’s top hedge funds, High-Flyer, which focuses on AI-driven quantitative trading.

Investors aren’t ignoring the upsides of cheaper AI models despite Monday’s DeepSeek-inspired stock-market panic.

The stock market was sent reeling earlier this week as Chinese AI startup DeepSeek unleashed chaos, triggering a $1 trillion tech selloff that erased $600 billion from Nvidia’s (NVDA) market value in a single day.