<br><div><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bv"/><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bvd gnt_x__h"/><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - DeepSeek is the new cost-efficient, Chinese AI model rivaling US AI"><div class="gnt_em_vp_w" data-g-r="vp_tp" data-c-vt="exco" data-t-pl="teal-hero"><button class="gnt_em_vp_a gnt_em_vp__tp_a" data-g-r="vp_ap vp_tg" data-c-vpattrs="{"muted":true,"bContent":false,"an":"usatoday","pn":"USA TODAY","vidNum":0,"docking":true,"exid":"7a94a662-d8e9-49a7-aeba-e8a15c79f0f2","plcmt":"2","iu":"/7103/usatoday/preroll_video/","cut":1}" data-c-vpdata="{"adsEnabled":true,"awsPath":"tech","byline":"","canonicalURL":"","contentSourceCode":"USAT","credit":"","duration":35000,"headline":"DeepSeek is the new cost-efficient, Chinese AI model rivaling US AI","hlsURL":"https://hlsmedia.gannett-cdn.com/authoring/videos/zype/renditions/6797b6d7a3e219000175adf8/480p_30fps,720p_30fps,1080p_30fps,master.m3u8?subtitles=77971221007","id":"77971221007","image":{"opto":true,"url":"/gcdn/authoring/authoring-images/2025/01/27/USAT/77971266007-20250127-t-125915-z-349871704-rc-2-cica-0-abjj-rtrmadp-3-deepseekmarkets.JPG?crop=2999,1687,x0,y300"},"keywords":"Artificial Intelligence,VPC - Video Analytics,Video Syndication - OTT Platforms,Video Syndication - USAT","mp4URL":"https://downloadmedia.gannett-cdn.com/authoring/videos/zype/renditions/6797b6d7a3e219000175adf8/1080p_30fps.mp4","origin":"USA TODAY","pageURL":{"long":"https://www.usatoday.com/videos/tech/2025/01/27/openai-new-rival-deepseek/77971221007/"},"promoBrief":"Chinese startup DeepSeek released a cost-efficient artificial intelligence AI model that is rivaling U.S. AI programs.","propertyName":"USATODAY","series":"","ssts":{"section":"tech","subsection":"","topic":"","subtopic":""},"tags":[{"id":"f31ad722-8c89-493a-be6c-802829384827","name":"Artificial Intelligence"},{"id":"12cc5543-9f04-49f7-9b7f-d0d46b93b8e0","name":"VPC - Video Analytics"},{"id":"16fe9f9b-4247-4e2e-a73c-9fac5b14d01b","name":"Video Syndication - OTT Platforms"},{"id":"6f55135f-3b5e-490d-8a52-a3b8e1f11ee7","name":"Video Syndication - USAT"}],"title":"What is OpenAI's new rival, DeepSeek?","url":"/videos/tech/2025/01/27/openai-new-rival-deepseek/77971221007/"}" aria-label="Play video"><img alt="" class="gnt_em_vp_img" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2025/01/27/USAT/77966673007-2195694012.jpg?crop=5999,3375,x0,y312&width=660&height=371&format=pjpg&auto=webp" data-g-r="vp_po" fetchpriority="high" elementtiming="ar-lead-image" decoding="async"/><svg class="gnt_em_vp_svg"><use xlink:href="#gnt_svg_video_play"/></svg></button></div></aside><p class="gnt_ar_b_p">The tech-heavy Nasdaq and broad S&P 500 indexes slumped on Monday after a competitive artificial intelligence model from a Chinese startup sowed doubts about the U.S.'s approach to AI.</p><p class="gnt_ar_b_p">Losses were led by <a target="_blank" href="http://www.usatoday.com/story/money/2025/01/27/nvidia-stock-up-over-900-since-2023-still-a-buy/77966816007/" target="_blank" rel="noreferrer noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">semiconductor darlings like Nvidia</a> and Broadcom whose chips fuel AI computing. Nvidia shares closed down almost 17%, posting its biggest drop since March 2020 and erasing nearly $600 billion from the company's market cap. Broadcom fell 17.4%, and other chip stocks like Micron declined 11.67% and AMD shed 6.35%.</p><p class="gnt_ar_b_p">Chinese startup DeepSeek released on Jan. 20 a cost-efficient AI model to compete with OpenAI using a fraction of computing power, or the type of technology sold by Nvidia and other companies. DeepSeek said it cost less than $6 million to train it.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">American venture capitalist Marc Andreessen called the model “<a target="_blank" href="https://x.com/pmarca/status/1882719769851474108" target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">one of the most amazing and impressive breakthroughs I’ve ever seen</a>.”</p><p class="gnt_ar_b_p">The success of DeepSeek could force companies to reevaluate computing power needs, which could cause 2026 AI spending to fall, or not grow, said Edison Lee, analyst at Jefferies. It also raises doubts about how much of a competitive edge the U.S. has in AI.</p><p class="gnt_ar_b_p"><strong>Need a break?</strong> <a target="_blank" target="_blank" rel="noopener" data-t-l=":body nav (cw)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://puzzles.usatoday.com/">Play the USA TODAY Daily Crossword Puzzle.</a></p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">The broad S&P 500 ended down 1.46%, or 88.96 points, to 6,012.28 and the tech-heavy Nasdaq tumbled 3.07%, or 612.47 points, to 19,341.83. Both posted their worst one-day decline since Dec. 18.</p><p class="gnt_ar_b_p">The blue-chip Dow erased early losses to close up 0.65%, or 289.33 points, to 44,713.58 as...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/markets/2025/01/27/china-deepseek-ai-stocks-impact/77966585007/">Read more <span>➤</span></a> </div>