Chinese AI Startup DeepSeek Challenges U.S. Tech Giants, Rattles Global Markets
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Monitoring dollar, DeepSeek and China's PMIs
A big week for world markets kicks off in Asia on Monday with investors still navigating the blizzard of headlines around U.S. President Donald Trump's likely economic agenda, while trying to gauge whether the "U.S. exceptionalism" narrative may be losing its luster. The dollar fell 1.8% last
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Morning bid: China's AI challenger puts investors on edge
A look at the day ahead in European and global markets from Kevin Buckland For two years, investors and analysts have pondered what - if anything - could take some of the steam out of the AI stocks rally. China may have just come up with the answer. Futures in the tech-centric U.S. Nasdaq
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Asia equities slide with US stock futures on China's AI push; dollar firms
TOKYO (Reuters) - U.S. stock futures and Asian shares outside China slumped on Monday as investors weighed the implications of Chinese startup DeepSeek's launch of a free, open-source artificial intelligence model to rival OpenAI's ChatGPT. Meanwhile, the dollar rose after U.S. President Donald
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AI, aye, aye
(Reuters) - A look at the day ahead in U.S. and global markets by Amanda Cooper, Finance and Markets Breaking News Editor, Europe. Stocks are getting hammered on Monday, with hefty declines in the technology sector as artificial intelligence big guns like Nvidia, Qualcomm and Intel took a
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Asia stocks rattled by Trump jitters; China shares mixed amid weak PMI, AI bets By Investing.com
Investing.com-- Most Asian stocks fell on Monday after U.S. President Donald Trump's imposition of trade tariffs on Colombia rattled risk appetite with the possibility of more such moves. Chinese markets were a mixed bag, as investors bought some local technology names on optimism over DeepSeek
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China's DeepSeek's rival to ChatGPT puts tech valuations in question
Image: Getty Images/ For illustrative purposes US stock futures and Asian shares outside China slumped on Monday as investors weighed the implications of Chinese startup DeepSeek's launch of a free, open-source artificial intelligence model to rival OpenAI's ChatGPT. Meanwhile, the dollar rose
[7]
Nasdaq futures tumble as China's AI push rattles Big Tech
(Reuters) - Futures linked to the tech-heavy Nasdaq tumbled on Monday as the overwhelming popularity of an inexpensive Chinese artificial intelligence model sparked a selloff in AI-related shares, with megacap stocks including Nvidia the worst hit. Chinese startup DeepSeek has rolled out a free
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US stock futures sink as investors weigh China challenge to US dominance in AI, Nvidia drops 12%
Chipmakers Nvidia and Broadcom both lost around 12%, while software giant Oracle lost 8%. Microsoft slid more than 6% and Amazon was down 4.5%. Google parent company Alphabet and Facebook parent Meta each lost about 3.5%.Investors dumped technology stocks in premarket trading Monday, sending US
[9]
Nasdaq futures tumble over 3% as China's AI push rattles Big Tech
Futures linked to the tech-heavy Nasdaq tumbled on Monday as the overwhelming popularity of an inexpensive Chinese artificial intelligence model sparked a selloff in AI-related shares, with megacap stocks including Nvidia the worst hit. Chinese startup DeepSeek has rolled out a free assistant it
[10]
Nasdaq Futures Slump as China's DeepSeek Sparks US Tech Concern
US stock index futures tumbled in early Asian trading hours Monday amid concerns that an artificial intelligence model from China's DeepSeek may disrupt the tech market. S&P 500 futures fell as much as 1% as of 10:12 a.m. in Hong Kong, while contracts on the Nasdaq 100 dropped as much as 1.9%.
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DeepSeek, a Chinese AI startup, launches a rival to ChatGPT, claiming better performance at lower costs. This development shakes U.S. tech stocks and raises questions about the sustainability of the AI boom.
Chinese AI Startup Shakes Global Tech Markets
In a surprising turn of events, Chinese artificial intelligence (AI) startup DeepSeek has launched a free, open-source AI model that claims to rival established players like OpenAI's ChatGPT. This development has sent shockwaves through global tech markets, particularly affecting U.S. tech giants
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.DeepSeek's Disruptive Potential
DeepSeek's new AI model, DeepSeek-R1, reportedly matches or exceeds the performance of more established models on several benchmarks. What's more striking is the company's claim that it has achieved this feat at a fraction of the cost incurred by its Western counterparts
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.The startup's V3 large language model, tested last month, purportedly outperformed offerings from OpenAI and Meta, with a smaller development budget and plans to charge users significantly less
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.Market Reaction and Tech Stock Tumble
The news of DeepSeek's breakthrough has rattled investors, leading to a significant downturn in U.S. tech stocks. Nasdaq Composite futures tumbled 1.8%, while S&P 500 futures sank 0.9%
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.Major AI-focused companies like Nvidia, Qualcomm, and Intel saw their stock prices dive. Nvidia, whose shares had risen by 250% since May 2023, experienced a particularly sharp decline of over 5% in 24-hour markets
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.Implications for U.S. Tech Dominance
The emergence of DeepSeek has raised concerns about the sustainability of U.S. tech dominance in the AI sector. It suggests that China can continue to make significant strides in AI development despite U.S. restrictions
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.This development comes at a crucial time, with four of the "Magnificent Seven" U.S. tech companies - Apple, Microsoft, Meta, and Tesla - set to report their quarterly earnings this week
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.Related Stories
Chinese Market Response
While most Asian markets fell in response to the news, Chinese tech stocks saw gains. The Hang Seng index rose 0.6%, with major Chinese internet companies like Baidu, Alibaba, and Tencent seeing increases between 0.9% and 3.5%
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.U.S. Response and Future Outlook
In light of these developments, U.S. President Donald Trump recently unveiled a plan for $500 billion in private-sector investment in AI infrastructure, aimed at outpacing rival nations
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.As the AI race intensifies, the tech industry faces a potential paradigm shift. The coming weeks may prove critical in determining whether U.S. tech giants can maintain their lead or if newcomers like DeepSeek will reshape the competitive landscape of artificial intelligence.
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