DeepSeek is causing havoc throughout the AI industry. U.S.-based tech companies that have heavily invested in AI saw their stocks take a tumble this week after the China-based startup released a new AI model on par with OpenAI's latest model, yet much cheaper to train — plus, DeepSeek made it free and open source.

OpenAI—which faces multiple lawsuits for using content without permission—accuses DeepSeek of 'distillation,' a technique that use larger models' outputs to improve smaller ones.

Microsoft Corp. Chief Executive Officer Satya Nadella had some kind words for DeepSeek, the Chinese artificial intelligence startup that roiled his company’s shares earlier this week.

The Chinese startup DeepSeek shook up the world of AI last week after showing its supercheap R1 model could compete directly with OpenAI’s o1. While it wiped nearly $600 billion off Nvidia’s market value,

DeepSeek is the biggest story in AI since ChatGPT hit the market. It showed up out of the blue and beat out the best AI models on the market at a fraction of the cost. However, it’s mostly known for the controversies that are piling on.