Key Takeaways Despite the success of a Chinese start-up's $6 million AI model, tech giants Microsoft, Alphabet, Amazon and Meta are unlikely to change their plans to spend hundreds of billions of dollars on AI infrastructure this year,

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.