Chinese tech startup DeepSeek released a model of its AI service that seemingly is on-par with U.S.-based competitors like ChatGPT, but required far-less computing power.

The tech-heavy Nasdaq composite closed down nearly 3% on Monday, with shares of AI-focused chipmaker Nvidia plunging 17% and shaving nearly $590 billion from the company’s market cap.

The drama started around January 20 when Chinese AI startup DeepSeek announced R1, a new simulated reasoning (SR) model that it claimed could match OpenAI's o1 in reasoning benchmarks. Like o1, R1 is trained to work through a simulated chain of thought process before providing an answer,

Chinese startup DeepSeek’s app has climbed to the top of the iPhone charts as its newest AI assistant showed competitive performance against rivals like OpenAI and Meta.

Global chip stocks slumped Monday on DeepSeek revealing it had developed AI models that nearly matched American rivals despite using inferior chips.

U.S. stocks recovered some ground on Tuesday after getting hammered by fears over China's DeepSeek AI model built on a shoestring budget.

Wall Street’s superstars are tumbling Monday as a competitor from China threatens to upend the artificial-intelligence frenzy they've been feasting on. The S&P 500 was down 1.7% in afternoon trading and heading for its worst day in more than a month.

Yet many in Silicon Valley believe the broad sell-off is an overreaction to DeepSeek’s latest model, which they argue could spur wider adoption and utility of AI by radically lowering the technology’s cost,