The release of a less capital-intensive artificial intelligence model from China’s DeepSeek sent a chill through the U.S. stock market Monday, initiating a massive selloff underscoring the fragile backdrop behind the record market.

Nasdaq posted its biggest one-day percentage drop since Dec. 18 on Monday as a low-cost Chinese artificial intelligence model prompted a steep selloff in U.S. chipmakers.

The conventional wisdom in AI has long been that cutting-edge performance comes with a cutting-edge price tag. DeepSeek is turning this notion on its head.

Chinese AI startup DeepSeek is making waves, with its AI assistant surpassing OpenAIs ChatGPT on Apples U.S. App Store. Using Nvidias lower-capability H800 chips, DeepSeek claims to have trained its model for under

President Trump said Monday that DeepSeek, a Chinese startup behind a popular new artificial intelligence (AI) model, represented a “wake-up call” for American tech firms. “The release of DeepSeek, AI from a Chinese company,

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

The Chinese company DeepSeek sent markets spiraling lower on fears over artificial-intelligence spending, but earnings season should steady the boat. Over the weekend, viral posts indicated that DeepSeek had recreated OpenAI’s technology in the form of its R1 model for only $6 million,

The stock market was sent reeling earlier this week as Chinese AI startup DeepSeek unleashed chaos, triggering a $1 trillion tech selloff that erased $600 billion from Nvidia’s (NVDA) market value in a single day.