DeepSeek, an AI model innovated by Chinese AI Lab under Lian Wenfeng, has caused disruption in the US AI sector by offering a cost-effective alternative to more expensive models. This development has led to a considerable crash in the AI token markets, dropping the total market capitalization by approximately 11.5% in just 24 hours.
The ramifications were felt across almost all top five AI coins, as the market struggled with the abrupt shift caused by this new player in the AI space.