US tech giant Nvidia lost over a sixth of its value after the surging popularity of a Chinese artificial intelligence (AI) app spooked investors in the US and Europe.
DeepSeek, a Chinese AI chatbot reportedly made at a fraction of the cost of its rivals, launched last week but has already become the most downloaded free app in the US.
AI chip giant Nvidia and other tech firms connected to AI, including Microsoft and Google, saw their values tumble on Monday in the wake of DeepSeek’s sudden rise.
In a separate development, DeepSeek said on Monday it will temporarily limit registrations because of “large-scale malicious attacks” on its software.
The DeepSeek chatbot was reportedly developed for a fraction of the cost of its rivals, raising questions about the future of America’s AI dominance and the scale of investments US firms are planning.
Last week, OpenAI joined a group of other firms who pledged to invest $500bn (£400bn) in building…
