Tech stocks fall as China’s DeepSeek sparks U.S. worries about the AI race
As computer stocks fell Monday due to concerns that Chinese artificial intelligence company DeepSeekleap was surpassing the United States in AI development, Nvidia's market value dropped by around $600 billion.
The nation's biggest tech companies are tracked by the Nasdaq Composite, which fell more than 3%. The S&P 500 fell over 1.5%, and the Dow closed the day up nearly 300 points after dropping earlier in the day.
China's DeepSeek, which revealed an open-source AI model in December after claiming that it took just two months and less than $6 million to develop, 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 bi...