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China’s breakthrough is an opportunity for American companies to build more efficient tools. That will also help the U.S. military.

The emergence of DeepSeek came shortly after President Trump unveiled his "Stargate" project to invest $500bn in advancing AI.

US tech companies are scrambling to enhance their AI models amid the rise of cost-effective Chinese alternatives with similar computing power.

Investors were looking to Microsoft and Meta to provide reassurance that they will keep spending heavily on Nvidia chips.