Artificial intelligence (AI) investing experienced a shakeup at the end of January with the release of DeepSeek's R1 model. This model was reported to have been trained far more cheaply than its U.S. counterparts and performed similarly in some areas. This caused a short-term panic in some AI stocks, but some have recovered.

Roughly two weeks ago, China-based DeepSeek unveiled its open-source large language model (LLM), known as DeepSeek-R1, which is similar to ChatGPT, the chatbot developed by OpenAI that effectively sparked AI euphoria in late 2022.

The week was a rollercoaster ride for the tech industry, with significant developments in the AI sector and the stock market. The emergence of China's DeepSeek R1 artificial intelligence model coincided with a $600 billion decline in Nvidia's market value.

The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed,

Pat Gelsinger, former CEO at Intel (INTC), is not sweating over new, low-cost artificial intelligence models from Chinese startup DeepSeek. Instead, he believes that DeepSeek’s cost-effective AI model will be a net positive for the industry.