DeepSeek surges in the West
Nvidia, Microsoft and Meta were set to open down on Monday and the development knocked European share prices.
The app has grown in popularity since its launch, challenging the widely held belief that the US is the unassailable leader in AI and prompting questions about the scale of investments US firms are planning.
It is powered by the open-source DeepSeek-V3 model, which its researchers claim was developed for less than $6m —significantly less than the billions spent by rivals.
But this claim has been disputed by others in the AI space.
DeepSeek's emergence comes as the US is restricting the sale of the advanced chip technology that powers AI to China.
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