Read Full Story DeepSeek News Live Updates: Chinese AI startup DeepSeep has made a rapid rise in the world of artificial intelligence with its V3 and R1 models. Not only can DeepSeek's models compete with their western counterparts on almsot all metrics, they are built on a fractionm of a cost and are trained with help from an older Nvidia chip. DeepSeek recently took over OpenAI's ChatGPT as the top free app on the Apple App Store in US and a number of other countries. The free AI app is also expected to put a dent in the market share of top US AI firms and might lead to significant price reduction. Why is US worried about DeepSeek? DeepSeek's LLMs are built on a much lower cost and puts into question the ongoing belief that running AI models requires increasing amounts of computing power. In a paper last month, DeepSeek researchers stated that the V3 model leveraged the Nvidia H800 chips for training and incurred a cost of less than $6 million, a miserly sum compared to the billions that AI giants like Microsoft, Meta and OpenAI have committed to spend this year alone. Moreover, the success of DeepSeek has also called into question the effectiveness of export curbs on advanced AI chips, a policy put in place by the Biden administration to slow down the growth of artificial intelligence in its adversorial countries. Meanwhile, S&P 500 and Nasdaq futures steadied after Monday's sharp losses, driven by Chinese AI startup DeepSeek's launch of low-cost, advanced AI models. Nvidia rebounded 3.5% in premarket trading following a record $593 billion market value loss. Other AI-linked stocks like Oracle and Broadcom gained, partially recovering after Nasdaq's 3% drop and S&P 500's 1.5% decline. For more details, click here.