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.

The Chinese AI service has Wall Street worried that it will be cheaper than expected to develop models. But as chip stocks sink, some analysts see a silver lining.

Nvidia's GPU demand is threatened by China’s DeepSeek AI model, but its long-term prospects remain strong. See why NVDA stock is an overreaction to the news.

Shares of semiconductor makers were dropping early Monday as a Chinese AI model triggered questions over their lofty valuations.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.