--- title: "American AI Industry Trembles as Deepseek Prepares to Release New Model" description: "When Chinese AI company DeepSeek released its cheap and serviceable V3 model early last year, it sent shockwaves throughout Silicon Valley and beyond, [roiling the stock market](), shaking [political confidence in American AI](), and stoking new fears from the [ever-churlish…" date: "2026-02-23" modified: "2026-02-23" authors: - name: "Joe Wilkins" job_title: "Correspondent" link: "https://futurism.com/authors/jwilkins" url: "https://futurism.com/artificial-intelligence/ai-industry-deepseek-v4" categories: - "Artificial Intelligence" - "Finance" - "Future Society" - "Investing" - "Machine Learning" --- # American AI Industry Trembles as Deepseek Prepares to Release New Model ![Close-up of a woman's face looking upward, rendered in a halftone dot pattern with a red overlay. The background consists of an orange and white polka dot pattern with the DeepSeek logo appearing behind the face. The image has a pop art style with bold colors and graphic elements.]() *Illustration by Tag Hartman-Simkins / Futurism. Source: Getty Images* When Chinese AI company DeepSeek released its cheap and serviceable V3 model early last year, it sent shockwaves throughout Silicon Valley and beyond, [roiling the stock market](), shaking [political confidence in American AI](), and stoking new fears from the [ever-churlish China hawks](). A year later, DeepSeek is preparing to launch its [new V4 model]() — a development which could have major implications for US tech companies and the firms backing them. According to a [*CNBC* bulletin](), DeepSeek's latest version is "expected to be imminent" given the release-schedule of previous versions. Depending on how impressive V4 is when it hits, the AI-heavy Nasdaq could be in for a major upset, as could the tech companies listed on it. Per *CNBC*, the Nasdaq composite fell 3 percent when DeepSeek V3 made its debut last year, and shares for the chip giant Nvidia plummeted 17 percent, wiping out $600 billion in a flash. While both recovered from the hits over time, it was a defining moment for DeepSeek, securing its reputation as a global player in the California-dominated AI space. If the stock market gets its "part two moment" — a DeepSeek able to compete with current-gen models from Anthropic and OpenAI — things could get ugly. Amazon, Microsoft, Meta, and Google spent hundreds of billions of dollars on AI across 2025, and are expected to shell out another [$650 billion]() in 2026. Simply put, there's a lot more money in the pot at this point, and even more being shuffled around based on those future spending forecasts. Given that DeepSeek V3 was able to confound the American tech industry for a total reported production cost of under $6 million — using lower-powered Nvidia chips, no less — there's only one thing the AI industry can do this week: buckle up. **More on Chinese AI:** *[China Planning Crackdown on AI That Harms Mental Health of Users]()* ## Author At Futurism, I focus on the intersection of technology and power — examining the economics, history, and politics behind today’s dystopian headlines. As a writer, I’m interested in topics ranging from AI’s impact on labor to startups nobody asked for. My prior work includes bylines in Jacobin, Verso, and Blue Labyrinths. My work for Futurism has been cited by publications including Forbes, The Guardian, MIT Technology Review, Time, The Nation, Mother Jones, The Verge, and Wired. I grew up in Michigan, attending Central Michigan University as well as Ball State University, where I earned a master of music. I now live in Brooklyn with my girlfriend and our cat Ziti. On weekends, you can find me hunched over a cold pint arguing geopolitics with the other transplants. ### Author social links [Bluesky]()