It shocked the market but has China's DeepSeek changed AI?

DeepSeek's arrival also marked a turning point in the US-China AI rivalry, some experts say. "China was seen as playing catch-up in large language models until this point, with competitive models but always trailing the best western ones," policy analyst Wendy Chang of the Mercator Institute for China Studies told the BBC. A large language model (LLM) is a reasoning system trained to predict the next word in a given sentence or phrase. DeepSeek changed perceptions when it claimed to have achieved a leading model for a fraction of the computational resources and costs common among its American counterparts. OpenAI had spent 5bn ( 3.7bn) in 2024 alone.