Tech stocks fall as China’s DeepSeek sparks U.S. worries about the AI race
As concerns grew that the Chinese artificial intelligence company DeepSeek was surpassing the United States in AI development, tech markets fell sharply on Monday morning.
At the opening bell, the Nasdaq Composite, which monitors the biggest tech companies in the nation, fell 3.4%. The S&P 500 plummeted about 2%, and the Dow fell 180 points.
China's DeepSeek, which claimed that it took only two months and less than $6 million to construct an open-source artificial intelligence model, was the catalyst for the sell-off. Concerns that China may surpass the United States in the scope and effectiveness of its AI efforts are fueled by the fact that those claims would be significantly less than the hundreds of billions of dollars that American tech companies like OpenAI, Microsoft, Meta, and ...