Meta and other AI competitors are facing challenges from China's DeepSeek as its new AI model outperforms competitors at lower costs.

Chinese startup DeepSeek has debuted an AI app that challenges OpenAI's ChatGPT and other U.S. rivals, sending a shock through Wall Street.

Wall Street’s superstars tumbled Monday as a competitor from China threatens to upend the artificial-intelligence frenzy they’ve been feasting on.The S&P 500 dropped 1.5%, dragged down in

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off. The common thought is, "Nvidia has risen so much already; how can it increase more?"

Dow Jones futures fell Sunday night, along with S&P 500 futures and especially Nasdaq futures, amid concerns over AI progress from China's DeepSeek. Nvidia, Broadcom, Meta and several other AI-related stocks were indicated lower overnight.

Nvidia (NASDAQ:NVDA) stock rampaged across the market, rising over 900% over the last two years to hit a $3.5 trillion valuation on insatiable demand for its advanced artificial intelligence chips and CUDA software ecosystem.

Nvidia was down nine percent in pre-market trading, with Meta and Microsoft, which has also made a big bet on AI in recent years, both seeing their shares fall by four percent. Dutch semiconductor equipment manufacturer ASML was also impacted by the slump, down 9.7 percent, while Schneider Electric similarly saw its shares slide by 8.7 percent.

U.S. stocks dropped sharply Monday after a surprise advancement from a Chinese artificial intelligence company, DeepSeek, threatened the aura of invincibility surrounding America's technology industry.

China-based DeepSeek is just over a year old, but the startup has released an open-source AI model called R1 that seems to have the rest of the industry worried. DeepSeek was founded in 2023 by Liang Wenfeng,

Wall Street’s superstars are tumbling as a competitor from China threatens to upend the artificial-intelligence frenzy they’ve been feasting on.

A major tech stock sell-off ensued Monday as the debut of DeepSeek rattled investors. Nvidia, Alphabet, and Microsoft were among the biggest losers.