If Chinese AI startup DeepSeek’s efficiency and performance achievements stand up to scrutiny, it could have big implications for the AI race. It's rare that new research results spark a stock sell-off, but that's what happened on Monday after DeepSeek, a startup owned by a Chinese hedge fund called High Flyer, published claims that it trained its new model called DeepSeek-V3 using only a fraction of the financial resources that American firms like Meta, OpenAI, and Google use to train models of comparable performance. And The New York Times says, "DeepSeek's release is a challenge to tech industry consensus that in order to build bigger and better AI systems companies would have to spend billions and billions of dollars on new data centers."