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

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

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.

DeepSeek is called “amazing and impressive” despite working with less-advanced chips.

Chinese AI lab DeepSeek shakes up Silicon Valley with top-performing language model, challenging American tech dominance.