A groundbreaking development by Chinese AI startup DeepSeek has sparked a global frenzy, with many in China celebrating it as a historic milestone that could reshape the future of technology. Dubbed by tech leaders like Marc Andreessen as “AI’s Sputnik moment,” the launch of DeepSeek’s cheaper, open-source artificial intelligence model has turned heads worldwide, even rattling stock markets.

In China, DeepSeek is being hailed as a national triumph. Feng Ji, co-founder of Game Science and producer of the hit gameBlack Myth: Wukong, described it as a “technology achievement that can change a nation’s fortune.” Posting on the social media platform Weibo, he shared his excitement, saying, “Such a stunning breakthrough comes from a pure Chinese company.”

Rivaling Silicon Valley

DeepSeek’s new AI model has managed to rival — and in some cases outperform — the efforts of leading US developers. This achievement has upended longstanding assumptions in Silicon Valley about the costs of building AI and the US’s dominance in the field, reported Bloomberg.

The shockwaves were not just metaphorical. As per the wire agency, a massive sell-off in US and European technology stocks, wiping nearly $1 trillion from their value, underscored investor concerns about how this development might disrupt the strategies of some of America’s tech giants.

For China, DeepSeek’s accomplishment signifies a major leap forward, particularly as the country continues to grapple with US-imposed restrictions on access to advanced chips and technology. While challenges remain — for instance, Huawei and Semiconductor Manufacturing International Corp. are still behind Taiwan Semiconductor Manufacturing Co. in chip-making capabilities — the success of DeepSeek has bolstered national pride.

A Boost to National Confidence

DeepSeek is the latest in a series of technological wins for China, following recent successes like Huawei’s Mate 60 Pro, which used an advanced domestically-made chip, and the continued rise of social media platform Xiaohongshu.

Hu Xijin, the former editor-in-chief ofGlobal Times, praised DeepSeek for shaking the belief in America’s invincibility in high-tech innovation. Writing on Weibo, Hu described the startup as the first Chinese company to cause such a seismic shift in the expectations of an entire industry. He added that DeepSeek had raised “an explosive question mark” over the US approach of pouring vast sums of money into tech development.

(With inputs from Bloomberg)