Breakthroughs from Chinese AI startup DeepSeek have stunned Silicon Valley and could bring turbulence to Wall St, as they were accomplished at a fraction of what the U.S. giants are spending and despite export bans on top-of-the-line chips.

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

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek.

DeepSeek, a Chinese artificial-intelligence company, has Silicon Valley marveling over how its programmers nearly matched American rivals despite using inferior chips.

Investors say the latest AI model released by China’s equivalent to OpenAI has the potential to disrupt the United States’ grip on generative AI technology.

HONG KONG -- Expectations that China's DeepSeek will unleash a new era of cost-efficient large language model training for artificial intelligence are weighing on shares of Nvidia and other advanced AI chip-related companies, which fell in both the U.S. overnight and Asia on Monday.

Venture capitalist Marc Andreessen, a close advisor to Trump, described it as “AI’s Sputnik moment” - a reference to the Soviet satellite launch that sparked the Cold War space race. Scale AI’s Wang wrote on X that DeepSeek “is a wake up call for America”.

Nvidia CEO Jensen Huang recently visited China to celebrate Chinese New Year with employees and reaffirm the company’s commitment

Nasdaq futures have plunged as the launch of China's DeepSeek AI model last week shook investor confidence in Nvidia's prospects.

In 2023, smartphones-to-silicon conglomerate Huawei quietly released its flagship Mate 60 Pro handset. The launch, while muted, was worth celebrating in the People’s Republic: the device featured a made-in-China chip that had previously seemed out of reach amid crippling U.

Meanwhile, a slew of other tech executives including Elon Musk, Jeff Bezos and Mark Zuckerberg are reportedly set to attend the events on Monday.