US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten US dominance in the fast-growing industry.

Nvidia fell 2% and was the heaviest weight on the S&P 500, though that represents just a smidgen of its huge gains made in recent years. The chip company’s stock had nearly quintupled over the ...

DeepSeek, which was developed by a start-up based in the eastern Chinese city of Hangzhou, has shown the ability to match the capacity of AI pace-setters such as Nvidia, which sank more than 11 percent Monday, giving up some $400 billion in market value.

DeepSeek-R1, designed to run on less-advanced chips, challenges Nvidia, Meta, and Microsoft by bypassing US tech restrictions, sparking concerns over AI market dynamics.

Nasdaq futures slumped and technology shares slid in Japan on Monday as surging popularity of a Chinese discount artificial intelligence model wobbled investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.

DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.

LONDON/SINGAPORE (Reuters) -Investors hammered technology stocks on Monday, sending the likes of Nvidia and Oracle plummeting, as the emergence of a low-cost Chinese artificial intelligence model cast doubts on Western companies' dominance in this sector.

Nvidia and other major U.S. tech firms saw a sharp drop on Monday, January 27, amid AI competitiveness concerns. Chinese startup DeepSeek challenged U.S. leadership, leading to an 11% drop in Nvidia’s stock—its worst since March 2020, according to reports.

Investors dumped technology stocks in premarket trading Monday, sending U.S. indexes sharply lower after Chinese artificial intelligence startup DeepSeek demonstrated a chatbot that it says rivals the top versions from OpenAI and Google for a fraction of the cost.

The tech-rich Nasdaq tumbled early Monday as traders around Wall Street and other global bourses reacted to the emergence of a low-cost Chinese generative AI venture that has apparently overtaken

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