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DeepSeek is a Chinese AI startup that built a competitive language model for only about $5.6 million—much less than what Western giants typically spend. It uses innovative techniques (like Mixture-of-Experts and Multihead Latent Attention) to run efficiently on lower-cost hardware, and it releases its technology as open source. This combination has not only disrupted global markets—triggering a sharp selloff in tech stocks such as Nvidia’s—but also intensified the global AI race, raising international concerns over data security and export controls.