The market reaction, when it came, was brutal. On January 27th, as investors realised just how good DeepSeek’s “v3” and “R1” models were, they wiped around a trillion dollars off the market capitalisation of America’s listed tech firms. Nvidia, a chipmaker and the chief shovel-seller of the artificial-intelligence (AI) gold rush, saw its value fall by $600bn. Yet even if the Chinese model-maker’s new releases rattled investors in a handful of firms, they should be a cause for…
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https://www.economist.com/leaders/2025/01/29/the-real-meaning-of-the-deepseek-drama