Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek.

The US President announced the US is competing with China following a huge investment into the future of AI during his week in office.

China's DeepSeek is roiling AI stocks as Wall Street mulls demand for Nvidia chips and huge capital spending by tech industry giants.

The news is the latest sign of skyrocketing valuations for privately held AI start-ups, which show growing investor enthusiasm for AI and confidence that companies like Anthropic will justify that valuation over the long term, eventually generating billions in profits.

On Tuesday afternoon, President Donald Trump held a press conference to announce Stargate, a $500 billion artificial intelligence (AI) infrastructure project in the United States. He called it the "largest AI infrastructure project, by far, in history."

OpenAI is focusing on AI infrastructure with Stargate as rivals like China's DeepSeek close the gap on its AI models.

When Chinese quant hedge fund founder Liang Wenfeng went into AI research, he took 10,000 Nvidia chips and assembled a team of young, ambitious talent. Two years later, DeepSeek exploded on the scene.

Chinese AI company DeepSeek says its DeepSeek R1 model is as good, or better than OpenAI's new o1 says CEO: powered by 50,000 NVIDIA H100 AI GPUs.

As a result a big change is afoot in the economics of a digital economy built on providing cheap services to large numbers of people at low marginal cost, thanks to free distribution on the internet.

President Trump's support for AI boosts Nvidia's position, with Project Stargate driving growth in data centers and the Blackwell chip powering next-gen AI. Read more here.

El Reg digs its claws into Middle Kingdom's latest chain of thought model Hands on Chinese AI startup DeepSeek this week unveiled a family of LLMs it claims not only replicates OpenAI's o1 reasoning capabilities,