DeepSeek, a Hangzhou-based startup founded in 2023, shot to the top of Apple’s App Store free app chart after releasing a new open-source AI model it says rivals OpenAI's work. Its website was hit by outages amid a spike in interest.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

DeepSeek’s ChatGPT competitor quickly soared to the top of the App Store, and the company is disrupting financial markets, with shares of Nvidia dipping 17 percent to cut nearly $600 billion from its market cap on January 27th, which CNBC said is the biggest single-day drop in US history.