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.

Investors should get familiar with it since it is now causing a market-wide selloff. It is a good idea to know the competition and what you’re working with before you invest in any AI stock. DeepSeek is now the place to start, as there’s a good chance DeepSeek’s revolutionary breakthrough will shape the trends in the coming months.

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