Chinese AI startup DeepSeek has drastically disrupted the U.S. tech landscape, becoming the most downloaded app after launching its R1 AI model at just $6 million. U.S. tech giants, particularly Nvidia, experienced historic stock declines amid fears over AI competitiveness and investments. President Trump called DeepSeek's rise a 'wake-up call,' while industry experts raised questions about the sustainability of current AI strategies. The model's claims of performance parity with expensive rivals, combined with cost-effective development, highlight a potential shift in the AI arms race between the U.S. and China.