A Chinese AI start-up's emerging as a threat to US tech companies and has sent their stocks in to a tailspin.

DeepSeek has revealed an artificial intelligence model similar to services like ChatGPT, but built for a tiny fraction of their cost.

It claims to have spent just $5.6 million on development compared to the billions ploughed into the tech by US counterparts.

Craigs Investments Partners Director Mark Lister told Mike Hosking that if DeepSeek’s model is everything it claims to be, they’ll be able to run on less powerful chips.

He says that the share prices for companies like NVIDIA had a huge amount of growth baked in on the assumption that everyone will need incredibly grunty chips to work, and DeepSeek’s claims bring that assumption into question.

Lister says that it means the share price is potentially a little overcooked.

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