Shares of chipmaker Nvidia plunged Monday, for its worst day since the global market selloff in March 2020 that the coronavirus pandemic triggered.

DeepSeek said it spent only $5.6 million developing its model—peanuts when compared with the billions U.S. tech giants have poured into AI.

A chatbot made by Chinese artificial intelligence startup DeepSeek has rocketed to the top of Apple’s App Store charts in the US this week, dethroning OpenAI’s ChatGPT as the most downloaded free app.

Nvidia is the gold standard and leading provider of the graphics processing units (GPUs) used to train and run AI systems. The company is believed to control as much as 98% of the data center GPU market, according to semiconductor analyst firm TechInsights. If AI models can be trained on lower-cost, inferior chips, Nvidia has a lot to lose.

DeepSeek topped the Apple App Store chart and sparked fears the Chinese company was quickly catching up with OpenAI's ChatGPT while costing far less.

Investors dumped technology stocks in premarket trading Monday, sending U.S. indexes sharply lower after Chinese artificial intelligence startup DeepSeek demonstrated a chatbot that it says rivals the top versions from OpenAI and Google for a fraction of the cost.

Mitesh Agrawal is leaving Lambda Labs to head a little known AI hardware startup trying to take on Nvidia.

Tech stocks tumbled as Chinese AI startup DeepSeek's advances raised fears of intensified competition, shaking investor confidence. Follow Newsweek's live blog.

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek.

The Dow Jones held up best out of major indexes on the stock market today. Nvidia plunged due to concerns of China AI firm DeepSeek.

With Monday’s losses, Apple has retaken the title of world’s most valuable company and Nvidia’s value sank to around $2.8 trillion.