Competing with OpenAI’s o1, DeepSeek’s models scored higher on benchmarks and disrupted the AI market, sparking debates on U.S.-China tech dynamics.

A new Chinese AI model, created by the Hangzhou-based startup DeepSeek, has stunned the American AI industry by outperforming some of OpenAI’s leading models, displacing ChatGPT at the top of the iOS app store,

Observers are eager to see whether the Chinese company has matched America's leading AI companies at a fraction of the cost.

Shares in major US technology firms have plunged after the rapid rise of a low-cost chatbot built by a Chinese artificial intelligence (AI) firm. The DeepSeek app, which was launched last week, has overtaken rivals including OpenAI's ChatGPT to become the most downloaded free app in the US.

The soaring popularity of a new AI chatbot from Chinese startup DeepSeek, plus the company's low-cost and high-performance advances in AI development, sent U.S. tech stocks tumbling Monday. Chipmaker Nvidia's shares slumped 17%,