Chinese AI startup DeepSeek is rattling markets. Here’s what to know

Photo illustration of DeepSeek's logo on a smartphone screen. – Illustration: Omer Taha Cetin/Anadolu (Getty Images) A Chinese artificial intelligence startup is rattling Silicon Valley and Wall Street after it demonstrated AI models on par with OpenAI's — for a fraction of the cost and energy. At just over a year old, Hangzhou-based DeepSeek released results for its latest open-source reasoning models, DeepSeek-R1, last week. It showed a comparable performance to OpenAI's reasoning models, o1-mini and o1, on several industry benchmarks. According to DeepSeek, training and developing one of the latest AI models cost $5.6 million. Meanwhile, U.S. rivals such…