DeepSeek-R1, developed by a Chinese AI lab, is potentially highly competitive and shockingly cost-effective, and could be a boon to the Indian IT sector.

The start-up had become a key player in the “Chinese Large-Model Technology Avengers Team” that would counter US AI dominance, said another. China’s delight, however, spelled pain for several giant US technology companies as investors questioned whether DeepSeek’s breakthrough undermined the case for their colossal spending on AI infrastructure.

The U.S. tried to slow China’s advances, but the startup showed how hard that is.

The emergence of the DeepSeek chatbot has sent Silicon Valley into a frenzy, with calls to go faster on advancing artificial intelligence and beat communist-led China before it is too