The US barred its export over fears that China could challenge American AI dominance if given unfettered access to Silicon Valley technology, so a viable AI model created in this environment speaks for itself in terms of ingenuity and potential.

Despite this, it is what DeepSeek represents, rather than what it has produced, that may ultimately be its lasting legacy.

It highlights a new way of thinking about the economics of the AI industry.

It levels the playing field for governments and companies with aspirations to become AI power players.

And it demonstrates that innovation born of necessity can produce results with the power to make the money markets rethink the economic direction of travel.

Many already felt the US AI industry was rife with inflated valuations, leading to talk of an AI bubble. That bubble hasn’t quite burst, but its structural integrity is certainly now under strain.

Some may interpret DeepSeek’s impact as a sign that the seat of AI power is shifting eastward – but it’s also possible that innovators worldwide will now take inspiration and attempt to develop their own lower-cost AI technologies.

The investment plans announced in the US – worth hundreds of billions of dollars – were simply not replicable elsewhere, but that may no longer be such a problem.