For investors, DeepSeek's emergence is causing a serious rethink regarding sky-high valuations of U.S. tech firms, especially those invested in AI.

Nvidia on Wednesday reported earnings that topped market expectations, with a $4.5 billion hit from US export controls being less than the Silicon Valley chip juggernaut had feared.

DeepSeek has made a "real impact" in how people think about inference and reasoning AI, the Nvidia CEO said.

Getting such a large injection of funds against an increasingly bifurcated venture capital landscape is no easy feat. The trend of "it's good to be big" comes with a tale of contrasting fortunes that dominate every nook and corner of the market.

The technology giant buoyed investors with a bullish outlook for the growth in artificial intelligence, but warned it was ceding market where it could not sell.

Tech companies are focusing on AI products over research, say industry experts, who are sounding the alarm about safety.

Jack Clark, a former journalist turned AI policy expert, said DeepSeek ‘might become a closer competitor’ if it had access to more computing resources.

Empire of AI' author Karen Hao says it might be time to rethink 'pedal to the metal' approach on data centre expansion as AI efficiency gains demonstrated by China's 'deepseek' challenge power assumptions.