DeepSeek has delighted the Chinese internet ahead of Lunar New Year, the country's biggest holiday. It's good news for a beleaguered economy and a tech industry that is bracing for further tariffs and the possible sale of TikTok's US business.

DeepSeek’s latest models, created by a small company with limited resources, are already beating many of the leading AI models in the United States.

SINGAPORE—A Chinese artificial-intelligence company has Silicon Valley marveling at how its programmers nearly matched American rivals despite using inferior chips. AI models from DeepSeek, the Chinese company,

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.

People across China have taken to social media to hail the success of its homegrown tech startup DeepSeek and its founder, after the company unveiled its newest artificial intelligence model, sending shock waves through Silicon Valley and Wall Street.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.