Chinese AI lab DeepSeek upended the artificial intelligence market following the release of its R1 large language model. Built on cheap, underpowered chips from Nvidia (NASDAQ:NVDA), the AI model surpassed the performance of established LLMs that used the chipmaker's most-advanced -- and expensive -- accelerators.

The efficiency gains of DeepSeek’s AI models startled the power industry, which is set to invest billions in electricity projects.

Fact checked by Peter Gratton The generative AI industry in the U.S. is getting a wake-up call, as are jittery investors who have seen their stocks rise with the AI boom in the last few years. That's because a Chinese startup,