The shock waves from the DeepSeek announcement in the artificial intelligence (AI) space are still being felt. As AI technology businesses, software developers and consumers digest the new reality, there is no doubt the market will shift, adapt and change in a drastic way.

At the heart of this change is the Chinese company, DeepSeek, a new venture that has achieved a significant breakthrough in inference speed, leapfrogging over previous, world-renowned AI models like OpenAI, and causing a massive derailment of chip-maker Nvidia’s stock by proving that lower-end chips can be used to achieve high-performance results in the AI space. This open-source market entry has radically changed the U.S. and global market and, in so doing, it has also changed the mindset of AI developers and investors in other countries, including India.

Prior to the DeepSeek announcement, the prevailing AI strategy was a scenario in which a business required a huge capital investment to build Large Language Models (LLMs) for training and to fund massive processing capabilities and a huge talent pool for development. That meant government support, and an industry and environment to achieve these multi-billion dollar investments and goals.