The R1 artificial intelligence model developed by China's DeepSeek has caused a huge shock in the market. This model can compete with giants like OpenAI through low-cost hardware, changing the balance of many industries in the technology sector. The success of this model has particularly shaken investors' confidence in AI-based projects, triggering a massive sell-off.

DeepSeek's open source model performs well while using fewer GPU resources. This has changed cost predictions in the tech industry and led large investors to reevaluate their current positions. Hardware manufacturers like Nvidia and AI-based crypto projects have been negatively affected by these new developments. Projects like Render and The Graph have lost up to 10% of their value in this process.