After the DeepSeek-induced ruction on Tuesday, Big Tech earnings reminded investors that it might be better to focus on companies already bringing in billions.

DeepSeek’s AI breakthrough challenges Big Tech with a cheaper, efficient model. This may be bad for the incumbents, but good for everybody else.

DeepSeek-R1, developed by a Chinese AI lab, is potentially highly competitive and shockingly cost-effective, and could be a boon to the Indian IT sector.

With a model that offers comparable performance at seemingly a fraction of the cost, the DeepSeek chatbot is causing a reckoning over American dominance in the tech industry. The U.S. has imposed sanctions on advanced chip sales to slow down progress in AI elsewhere.