Chinese startup DeepSeek's artificial intelligence challenges major U.S. tech companies like Meta and OpenAI. Here's why.

BEIJING (Reuters) -Chinese tech company Alibaba on Wednesday released a new version of its Qwen 2.5 artificial intelligence model that it claimed surpassed the highly-acclaimed DeepSeek-V3. The unusual timing of the Qwen 2.

Alibaba says the latest version of its Qwen 2.5 artificial intelligence model can take on fellow Chinese firm DeepSeek's V3 as well as the top models from U.S. rivals OpenAI and Meta.

Chinese tech startup DeepSeek has come roaring into public view shortly after it released a model of its artificial intelligence service that seemingly is on par with U.S.-based competitors like ChatGPT,

Yet many in Silicon Valley believe the broad sell-off is an overreaction to DeepSeek’s latest model, which they argue could spur wider adoption and utility of AI by radically lowering the technology’s cost,

U.S. tech stocks, including Nvidia, Oracle and Broadcom, plummeted Monday after Chinese startup DeepSeek said it created an AI system that can compete against chatbots such as OpenAI's ChatGPT at much lower costs.

OpenAI is examining whether Chinese artificial intelligence (AI) startup DeepSeek improperly obtained data from its models to build a popular new AI assistant, a spokesperson confirmed to The Hill. The ChatGPT maker said it is “reviewing indications that DeepSeek may have inappropriately distilled” its models.

The American company OpenAI has accused the Chinese startup DeepSeek of using its proprietary AI models. According to reports by the British newspaper "Financial Times" on Wednesday, these models were allegedly used to train the artificial intelligence developed by the Chinese company.