DeepSeek's emergence is shaking up investor confidence of the AI story that has been lifting the U.S. bull market in the past two years.

EST Nvidia releases its first statement on DeepSeek as its stock dipped to a 18% loss on the day, calling the Chinese company’s model “an excellent AI advancem

American stocks crashed on Monday as focus shifted to the upcoming Federal Reserve interest rate decision and as concerns about DeepSeek’s success. Futures tied to the Dow Jones index fell by over 1%,

The Nasdaq Composite fell sharply on Monday after a Chinese artificial intelligence start-up had Wall Street rethinking many assumptions underpinning the AI stock rally. The tech-heavy index sank 3.1%.

According to a report, China’s Deepseek released a large language model (LLM) in December 2024 which performs the same as OpenAI and other AI systems despite the continued restrictions by the U.S. on chip imports.

Stock index futures tumbled Monday as concerns about the AI rally ramped up in the face of buzz about China AI startup DeepSeek, sparking a risk-off move. Nasdaq futures (US100:IND) -3.5% tumbled. AI names like Nvidia (NVDA) and Super Micro Computer (SMCI) were down more than 10%.

The price of Bitcoin dipped below $98,000 after DeepSeek, a Chinese AI startup, threw a wrench into Big Tech's week of key earnings.

Jan. 27, 12:30 p.m. ET U.S. stocks got walloped Monday: The S&P 500 was down about 2% at 12:30 p.m. EST, and the tech-heavy Nasdaq sank 3%, heading toward its worst percentage loss since Dec. 18 and third-worst day of the last two years.

DeepSeek has open-sourced its flagship models along with six smaller variants, ranging from 1.5 billion to 70 billion parameters.

A Chinese artificial intelligence startup is rattling Silicon Valley and Wall Street after it demonstrated AI models on par with OpenAI’s — for a fraction of the cost and energy.

Chinese startup DeepSeek has developed an efficient open-source AI model that matches industry leaders' performance with fewer resources, causing major market turbulence and challenging assumptions about AI development costs.