China's DeepSeek launches open-source AI model R1, challenging OpenAI and Meta

China-based startup DeepSeek has launched an open-source AI model called R1, which is raising concerns among major players like OpenAI and Meta. R1 is reported to be efficient and comparable in performance to OpenAI's models, but at a fraction of the cost. DeepSeek's R1 has outperformed OpenAI's o1 in early tests, particularly in a math challenge. This development could impact Nvidia, which has benefited from high sales of AI hardware, as analysts predict a potential drop in its stock value. The launch of R1 has drawn comparisons to the US-Soviet space race, with some suggesting it marks a significant shift in AI competition. US trade sanctions on high-end AI hardware to China may have inadvertently led to DeepSeek's advancements.