The Chinese artificial intelligence firm DeepSeek has rattled markets with claims its latest AI model performs on a par with those of OpenAI, despite using less advanced, more energy efficient compute

At a supposed cost of just $6 million to train, DeepSeek’s new R1 model, released last week, was able to match the performance on several math and reasoning metrics by OpenAI’s o1 model – the outcome of tens of billions of dollars in investment by OpenAI and its patron Microsoft.