Chinese artificial intelligence startup DeepSeek rattled the U.S. technology sector after the company recently unveiled an AI model that is competitive with leading U.S. models b

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

Apple CEO Tim Cook praised DeepSeek's AI models for enhancing efficiency, following their recent rise in app stores. He discussed Apple's hybrid AI strategy and confirmed a partnership with ChatGPT, while not revealing plans to integrate DeepSeek's models amidst competition concerns from OpenAI.

China’s DeepSeek AI is taking on ChatGPT, but privacy concerns, censorship, and accuracy issues are raising red flags. Here’s what you need to know.