The release of DeepSeek R1 last week shocked the AI industry. At a fraction of the cost, it could match the performance of OpenAI o1. DeepSeek claimed that its R1 model took only two months and less than $6 million to create. This cost contrasts with that of OpenAI and other US-based LLM creators, which have already spent billions. Did US AI companies overspend? The release of this low-cost DeepSeek R1 model rattled the US stock market. The Nasdaq100, which includes many big US tech companies, crashed by around 3%. Chipmaker stocks were devastated, with a double-digit percentage drop. NVIDIA dropped by ~17% overnight. NVIDIA share price dropped by ~17% in a single trading day after the release of DeepSeek R1 model What Happened? DeepSeek has released an open-source artificial intelligence model that it claims took only two months and less than $6 million to develop. This is a massive breakthrough in the AI industry! So far, the high cost of...