Shares of Nvidia ( NVDA -5.29%) were sinking Wednesday. The company's stock fell 6.2% as of 2:20 p.m. ET, but lost as much as 6.9% earlier in the day. The move comes as the S&P 500 ( ^GSPC -0.39%) and Nasdaq Composite ( ^IXIC -0.54%) lost 0.8% and 1.1%, respectively.

Chinese startup DeepSeek's artificial intelligence challenges major U.S. tech companies like Meta and OpenAI. Here's why.

There’s been an escalation in the generative AI large language model “wars” as Alibaba Qwen 2.5 launched Wednesday. This latest AI salvo from China-based Alibaba is directly aimed at its in-country rival DeepSeek, which launched its own AI — DeepSeek-V3 — in December and its R1 version earlier this month.

Financial writer sees positive prospects for Alibaba's cloud computing business but warns of competition from other AI players, rating it a cautious buy.

Nvidia stock trades lower, ASML rises after fourth-quarter bookings top analysts’ forecasts, and Wall Street awaits quarterly earnings Wednesday from Tesla, Microsoft, and Meta Platforms.

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.

Max's debut is unusual, considering it arrived on the first day of the Lunar New Year holiday, when most Chinese workers

Alibaba Group Holding Limited's new AI model Qwen 2.5-VL could boost its Cloud business growth, outperforming competitors. Click for my BABA stock update.

As Ferris astutely observed, life moves pretty fast in chatbot land. So, forget that ancient news about DeepSeek's cheap and powerful LLM tanking Nvidia's share price. Because here comes another Chinese tech giant, Alibaba, with its own new AI model that surpasses the lot. Well, it does according to Alibaba.

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA NVDA,

Free, highly capable AI systems don’t just stop with DeepSeek. There are more open-source AI products coming from China, such as YuE, which generates full pop music tracks complete with warbled lyrics, and Alibaba Group Holding Ltd.’s Qwen, which creates AI agents.

Alibaba can boost AI capabilities, reduce R&D costs, and optimize operations with DeepSeek R1's advancements. Click here to find out why BABA stock is a Buy.