The article discusses how DeepSeek, a relatively unknown Chinese AI startup, has developed a new AI model called DeepSeek R1 that outperforms OpenAI's ChatGPT o1 despite using less powerful chips and lower costs. The model was built in just two months for under $6 million, navigating around U.S. semiconductor restrictions. This development has raised concerns in Silicon Valley about the potential shrinking of America's lead in AI technology. Photo credit: DeepSeek AI