Investors aren’t ignoring the upsides of cheaper AI models despite Monday’s DeepSeek-inspired stock-market panic.

A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over the economic and geopolitical competition between the U.

Chinese tech startup DeepSeek released a model of its AI service that seemingly is on-par with U.S.-based competitors like ChatGPT, but required far-less computing power.

DeepSeek is a Chinese AI startup that recently launched a competitive new AI model, R1, with impressive capability at a lower cost.

News from China upset U.S. markets Monday and disrupted the frenzy that had built up around artificial intelligence.

The app's sudden popularity, as well as DeepSeek's reportedly low costs compared to those of US-based AI companies, have thrown financial markets into a spin. Silicon Valley venture capitalist Marc Andreessen has hailed DeepSeek as "one of the most amazing and impressive breakthroughs" in AI.