The Chinese startup DeepSeek has sent shockwaves throughout the AI world with the release of its less-resource-intensive AI chatbot, calling into question the amount of power and financial investment needed to develop the technology.

Approximately $1 trillion is set to be spent globally on AI development in the coming years, according to estimates by Goldman Sachs. But DeepSeek developed its AI model for $6 million, according to Wedbush Securities analyst Dan Ives.

A major disruption hit the artificial intelligence sector this week as DeepSeek, a China-based chatbot, unveiled its latest AI models—trained for just $6 million. That’s a fraction of the cost U.S. companies typically spend,