DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.

DeepSeek founder is now considered an 'AI hero' in China, following the recent announcements made by the company that changed the AI race.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.