A Chinese artificial-intelligence company has Silicon Valley raving, calling it "amazing and impressive,"despite working with less-advanced chips.

Founded in 2023 by High-Flyer Quant, a Chinese quantitative investment fund, DeepSeek focuses on developing open-source AI models with low training costs. Last month, when DeepSeek released DeepSeek-V3, it said the training cost of the model was only about USD6 million.

When Chinese quant hedge fund founder Liang Wenfeng went into AI research, he took 10,000 Nvidia chips and assembled a team of young, ambitious talent. Two years later, DeepSeek exploded on the scene.