![On January 27, 2025, the tech industry faced a significant upheaval as DeepSeek, a Chinese AI startup, unveiled its R1 m...](https://img3.medioq.com/363/512/593613673635128.jpg)
29/01/2025
On January 27, 2025, the tech industry faced a significant upheaval as DeepSeek, a Chinese AI startup, unveiled its R1 model. This advanced AI system matches the performance of leading Western counterparts while utilizing fewer and less advanced chips. The announcement led to a substantial sell-off in semiconductor stocks globally. NVIDIA, a key player in AI chip manufacturing, experienced a 17% drop in its stock price, erasing nearly $600 billion from its market value.
DeepSeek's R1 model is notable for its cost-effectiveness, reportedly trained at a fraction of the cost compared to U.S.