Yesterday's market action in both the crypto and AI sectors was influenced by the competition between DeepSeek and OpenAI. DeepSeek, a Chinese AI company, was able to rival OpenAI's expensive model for much cheaper on older chips, resulting in a selloff in Nvidia. This led to a scramble to reassess AI plays and tokens in the market, which were considered overvalued. Despite the correction, there is still bullishness around the AI/crypto intersection, and more development and use cases are expected to reignite excitement. The current situation may also be healthy for US AI companies, as they can learn and improve their models based on DeepSeek's competition.



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