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.

Shares for leading US chip firm Nvidia dropped by almost 17% on Monday after the emergence of DeepSeek stunned Silicon Valley.

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

US stocks and shares in chip-making giant Nvidia on Tuesday clawed back some of their losses following a sell-off triggered by the sudden success of Chinese artificial intelligence firm DeepSeek. General Motors reported a $3-billion quarterly loss Tuesday due to costs from restructuring a Chinese venture,

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 1.7% in afternoon trading and heading for its worst day in more than a month.

Yet many in Silicon Valley believe the broad sell-off is an overreaction to DeepSeek’s latest model, which they argue could spur wider adoption and utility of AI by radically lowering the technology’s cost,

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.