Before last week, almost no-one had heard of DeepSeek. Yet this Chinese start-up has shocked the tech world — and global stock markets — with the release of R1, a new model that threatens to upend the economics of generative AI.

“DeepSeek-R1 is one of the most amazing and impressive breakthroughs I’ve ever seen — and as open source, [it is] a profound gift to the world,” Marc Andreessen, a Silicon Valley luminary and investor, posted on X last week...

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