Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

News of DeepSeek’s capabilities—not to mention the fact that it is open source and free for anyone to use and modify—sent U.S. markets reeling, including the tech-heavy Nasdaq, which saw $1 trillion evaporate from its market cap as AI-adjacent stocks such as Nvidia and Broadcom were hit hard. U.S.-listed shares of TSMC, which trade on the New York Stock Exchange (NYSE), also took a dive.

But today, some of those stocks are recovering, at least to a degree. Here’s what you need to know about DeepSeek and its latest market impact.

‘DeepSeek R1 is AI’s Sputnik moment.’

Investor and engineer Marc Andreessen posted on X yesterday that ‘Deepseek R1 is AI’s Sputnik moment.’