Deepseek, a Chinese artificial intelligence company, has made significant waves in the stock market following the release of its latest large language model that rivals GPT-4. The company’s emergence has caused notable market shifts, particularly affecting shares of major tech companies like Baidu. Deepseek’s new AI model demonstrates capabilities comparable to OpenAI’s GPT-4, especially in tasks requiring reasoning and coding abilities. The company’s success highlights China’s growing prominence in the global AI race, despite facing U.S. chip restrictions and export controls. Founded by former Baidu researchers, Deepseek has managed to develop competitive AI technology while operating under challenging international constraints. The market reaction to Deepseek’s achievements has led to significant volatility in Chinese tech stocks, with investors reassessing their positions in established players like Baidu and SenseTime. This development underscores the intense competition in the AI sector and suggests that smaller, innovative companies can still challenge larger, established tech giants. The situation also reflects the broader implications of AI advancement on market dynamics and international technological competition, particularly in the context of U.S.-China relations and the global race for AI supremacy.