DeepSeek, a Chinese artificial intelligence (AI) start-up, is sending shock waves through the U.S. tech sector by demonstrating its latest AI assistant, which achieves performance comparable to or even surpassing some of the world's best chatbots.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

The tech-heavy Nasdaq composite closed down nearly 3% on Monday, with shares of AI-focused chipmaker Nvidia plunging 17% and shaving nearly $590 billion from the company’s market cap.

Chinese startup DeepSeek’s app has climbed to the top of the iPhone charts as its newest AI assistant showed competitive performance against rivals like OpenAI and Meta.

Tech stocks falling after small Chinese lab, DeepSeek, develops new AI model that challenges ChatGPT and Tesla; what to know.

A major disruption hit the artificial intelligence sector this week as DeepSeek, a China-based chatbot, unveiled its latest AI models—trained for just $6 million. That’s a fraction of the cost U.S. companies typically spend,