A surprise development may have turned the market for artificial intelligence (AI) chips on its head. DeepSeek, a China-based start-up, developed an open-source large language model, claiming it took two months and cost less than $6 million.

The week was a rollercoaster ride for the tech industry, with significant developments in the AI sector and the stock market. The emergence of China's DeepSeek R1 artificial intelligence model coincided with a $600 billion decline in Nvidia's market value.

Pat Gelsinger, former CEO at Intel (INTC), is not sweating over new, low-cost artificial intelligence models from Chinese startup DeepSeek. Instead, he believes that DeepSeek’s cost-effective AI model will be a net positive for the industry.

The emergence of a small Chinese artificial intelligence (AI) company called DeepSeek initially put a giant hole in the U.S. stock market. Tech stocks -- particularly those connected to the AI trend -- got crushed,