In the midst of a turbulent US tech stock market, investors are speculating on how China’s DeepSeek’s new, cost-effective reasoning model will impact the industry in the long term. This question isn’t just confined to investors; the global AI race is prompting a debate about whether DeepSeek’s results can genuinely deliver a superior reasoning model at a significantly lower cost than its American competitors. In previous cycles, we’ve seen double-digit losses at companies like Nvidia, along with other setbacks, such as Palantir’s 6% dip, creating a sense of unease among investors. DeepSeek has taken the market by storm, but the longer-term implications remain uncertain. Is this the ‘Sputnik moment’ for the AI era in the US, or is there more to be uncovered? Market speculation, the US-China AI race, and the rise of regional AI systems are all shaping a world of uncertainty.