Analysis and TechnologyThe new AI model from China's DeepSeek performs on a level with leading US models without requiring as much computing power but despite a huge drop in their stock, it's not game over for US tech companies 27 January 2025 DeepSeeks R1 model is available for freeLam Yik/Bloomberg via Getty ImagesThe China-based AI company DeepSeek sent shock waves through both Silicon Valley and Wall Street by releasing an AI model that competes with the best US ones but was made at a fraction of the cost. Although the news has sparked a sell-off of tech stocks and prompted venture capitalist Marc Andreessen to describe the results as AIs Sputnik moment the progress China has made on AI seems to have been a surprise to much of the tech world this open-source AI is not as revolutionary