Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.

Good morning. Today is Monday, January 27th. I'm Julie Morgan. The artificial intelligence race has taken a surprising turn.

Meta is taking advantage of TikTok's App Store absence and diversified energy eyes

Maverick. Chinese AI startup DeepSeek's large language model is outperforming American rivals

and stirring of fears of China overtaking the US and AI. According to benchmarks posted on DeepSeek's website,

R1 outperform models from American competitors like OpenAI, meta, and anthropic,

who have spent billions of dollars on building their models. DeepSeek, which is solely funded by

Chinese hedge fund High Flyer, revealed its R1 model on Monday

and detailed in a paper how LLMs can be built on bootstrap budgets

and improved without human supervision.

Both DeepSeek and High Flyer were founded by a hedge fund manager

and he's the only AI leader invited to a meeting of industry experts with China's

second most powerful leader. Deepseek's R1 is open source similar to Metaslama. Microsoft CEO

Satya Nadella said at the World Economic Forum in Davos that we should take the developments out of China very, very seriously.

And in an interview with CNBC, the CEO of Scale AI described the AI race between the U.S.

and China as an AI war. He went on to say that he believes China has substantially more

Nvidia H-100 GPUs than people may think.

We'll take a look at how this news is impacting tech stocks in just a few minutes.

Meta Platforms is reportedly offering compensation to creators on Instagram to promote the

service on other apps. The report which cited details of a contract offered to a creator that was seen by CNBC said

meta is taking advantage of BiteDance's TikTok app being unavailable from Apple and Google's

app stores to promote Instagram.

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