The Era of DeepSeek is here as users across the world put the new open-source AI to test and check its limit and speed.

Last month, a Chinese company called DeepSeek released an AI model that is now ranked among the very best.

DeepSeek’s claim that it developed its model for under $6 million is truly astounding. This is an almost unbelievably low figure, especially when compared to other AI models.

Its largest competitor, made by the US company OpenAI, which produced ChatGPT, spent reportedly tens of millions of dollars.

Not only did DeepSeek accomplish what was considered impossible, but also did it with less-advanced chips.

So basically, DeepSeek was able to create an AI that could produce similar results using fewer resources and dated chips.

Furthermore, what they have produced is open-source which means that other developers can improve the model and use its technology in their models.

The Era of DeepSeek

The Era of DeepSeek caused the biggest loss came to Nvidia the chipmaker, which produces the most expensive technology that is at the heart of AI.

Nvidia shares lost nearly 17 percent of their value on Monday — the day DeepSeek was released. This loss amounts to nearly $600bn.

Nvidia chips are subject to very strict export controls precisely because the United States wants to protect its supremacy in the chip market.

However, the very existence of DeepSeek questions the valuation of Nvidia as a company. If a similar AI model can be produced with vastly cheaper materials, what incentive do investors have to put money into it?