People across China have taken to social media to hail the success of its homegrown tech startup DeepSeek and its founder, after the company unveiled its newest artificial intelligence model, sending shock waves through Silicon Valley and Wall Street.

Government policies, generous funding and a pipeline of AI graduates have helped Chinese firms create advanced LLMs.

DeepSeek, a Chinese AI research lab, has released an advanced AI model which rivals leading models from OpenAI. The DeepSeek-R1 model can perform complicated mathematical reasoning, code generation, and more with fewer resources than its American competitors.