U.S.-listed shares of tech giants are gaining some lost ground this morning after a China-based startup shocked the AI world with a powerful LLM. Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

A Chinese company’s cut-rate computing solution has upended the tech world, with companies, investors and even the U.S. government trying to understand what it means for the future.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

The economist adds that some observers contend that "there's no way the advanced technology was built so fast alongside such a modest figure." Nevertheless, the idea that DeepSeek

Despite the negative financial impact, Nvidia praised DeepSeek’s breakthrough. “DeepSeek is an excellent A.I. advancement and a perfect example of test time scaling,” a company spokesperson told Observer in a statement.

A Chinese startup’s latest affordable artificial intelligence (AI) chatbot sent NVIDIA Corporation’s NVDA shares into a tailspin, erasing half a trillion in market capitalization. However, the widespread anxiety among NVIDIA investors is overblown.

A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over the economic and geopolitical competition between the U.