DeepSeek releases ChatGPT-like AI model, U.S. tech stocks tumble

China-based startup released R1 AI model in late January 2025

By Tim Culverhouse    January 27, 2025         

DeepSeek releases ChatGPT-like AI model, U.S. tech stocks tumble

Alenoach, Public domain, via Wikimedia Commons

DeepSeek released its R1 artificial intelligence (AI) model, and the U.S. stock market saw a decline in tech and AI stocks.

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DeepSeek releases ChatGPT-like AI model, U.S. tech stocks tumble

Alenoach, Public domain, via Wikimedia Commons

DeepSeek released its R1 artificial intelligence (AI) model, and the U.S. stock market saw a decline in tech and AI stocks.

DeepSeek, a China-based artificial intelligence (AI) start-up, recently released its R1 AI model.

Its features are similar to other AI platforms, such as ChatGPT, and the company, according to a CNN report, spent markedly less than other AI organizations for computing power on its base model.

U.S. tech stocks tumble during early trading

As the U.S. stock market opened on Monday, the tech sector responded with a dip. CNN reported that the S&P 500 fell by 1.4%, while NASDAQ dropped by 2.3%.

Tech and artificial intelligence companies such as NVIDIA, Meta and Alphabet also suffered a stock price decline.

U.S. and China competing in AI landscape

DeepSeek’s R1, according to the company, only required $5.6 million in computing power for its base model. Comparatively, OpenAI, Google and Meta have spent hundreds of millions or billions on the development and operation of their respective AI technologies.

The DeepSeek news comes on the heels of an up-to $500 billion investment in AI infrastructure from the private sector - led by OpenAI, Oracle and SoftBank – announced by U.S. President Donald Trump on January 21.

On Twitter/X, users saw the release of DeepSeek as both innovative and impressive.

About the Author
Tim Culverhouse, Editorial Director

Tim Culverhouse

Editorial Director

Tim is the Editorial Director of Robotics247.com. His mission is to provide valuable information and insights to robotics professionals and decision-makers, and to help them solve business challenges. He is a creative, deadline-driven, and detail-oriented storyteller. In addition, he is a sports broadcaster and public address announcer.

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