How DeepSeek sent shockwaves through Silicon Valley, explained | The Story

A Chinese rival to ChatGPT wiped $700 billion from the value of the world’s largest tech companies in just one day. DeepSeek claims its free, open-source model is more cost-effective and efficient than its American rivals calling into question the dominance of Silicon Valley. One tech baron has even called it a ''Sputnik moment" in reference to the time when Russia surprised the US by launching the first satellite into orbit - which began the space race.

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