Today could be a very red day in the stock market, and DeepSeek might be to blame. China's AI startup DeepSeek has captured the attention of enthusiasts ever since its launched its latest reasoning AI model,

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

DeepSeek AI live - US stocks bounce back after Nvidia plunge - DeepSeek has caused shockwaves throughout the tech industry - follow for live updates

Meta, Nvidia, and other tech giants react to DeepSeek's competitive, cost-efficient models that challenge established market players.

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.

Shares in AI-focused American tech giants, including Nvidia and Microsoft, fell on Monday after a China LLM shocked Silicon Valley.

The fallout from the seemingly overnight surge in interest around DeepSeek was swift, and severe: The company’s AI model, which it claims to have developed

In this latest installment of Opening Bid, Jason Thomas of Carlyle weighed in on what the arrival of DeepSeek might imply for markets and its competitors like Nvidia.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

"The release of DeepSeek, AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing to win," said the president, addressing House Republicans in Miami on Monday.

US President Donald Trump has said that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper, faster method of artificial intelligence.