The US tech market has had a rough week. DeepSeek, a Chinese Artificial Intelligence (AI) company, has shown it is possible to develop an AI language model equal to (or even superior) to US models using only a fraction of the resources. This announcement challenges the valuations of US tech companies, particularly those dependent on AI investments. The opacity surrounding DeepSeek's infrastructure raises questions and more information is needed to draw definitive conclusions. It is, however, clear that any disruption will create both winners and losers, and the advancement of Chinese technology should not be underestimated. Many are calling this a “Sputnik moment” for AI, a trigger for larger investments to ensure China versus US supremacy. However, we see it more like the “Jevon’s paradox”: fewer chips may be needed initially, but as costs lower, demand will rise, potentially requiring even more chips.