US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten American dominance in the fast-growing industry. The chatbot developed by DeepSeek,

Japanese tech firms sank Tuesday after a sell-off in US titans following news of China's DeepSeek chatbot, while the dollar rallied on a report saying Washington was considering universal tariffs on a range of goods.

DeepSeek's claims that it cost mere millions to build fanned fears that the huge investments into AI by U.S. firms are unwarranted and a bubble waiting to pop.

The S&P 500 dropped 1.7 per cent, and the Nasdaq 100 slipped 3.1 per cent. With big tech stocks crashing, US stocks were set for their worst day since the last US Federal Reserve policy verdict roiled

Nasdaq futures slumped and technology shares slid in Japan on Monday as surging popularity of a Chinese discount artificial intelligence model wobbled investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.

Major AI players, including Nvidia, Meta, Microsoft, and Alphabet, saw significant losses, with Nvidia shedding over 11% and losing $400 billion in market value. Analysts highlighted China’s growing challenge to US tech dominance.

Nvidia's US$589 billion loss in stock market value is the deepest ever one-day loss for a company on Wall Street, according to LSEG data. It was more than double the previous one-day record loss, set by Nvidia last September. The tech-rich Nasdaq index finished down more than three per cent.

Marc Andreessen, the Silicon Valley venture capitalist, said in a post on X on Sunday that DeepSeek's R1 model was AI's "Sputnik moment," referencing the former Soviet Union's satellite launch that marked the start of the space race in the late 1950s.

Wall Street's superstars are tumbling Monday as a competitor from China threatens to upend the artificial-intelligence frenzy that's helped them make so much money.

DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.

Wall Street’s superstars are tumbling Monday as a competitor from China threatens to upend the artificial-intelligence frenzy they've been feasting on. The S&P 500 was down 1.8% in afternoon trading and heading for its worst day in more than a month.