Investors spent much of 2024 looking for less crowded trades set to gain from the AI boom. This week, many of those names got caught in the historic sell-off.

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.

The Chinese AI service has Wall Street worried that it will be cheaper than expected to develop models. But as chip stocks sink, some analysts see a silver lining.

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

Media: As Chinese AI startup DeepSeek draws attention for open-source AI models that it says are cheaper than the competition while providing similar or better performance, AI chip king Nvidia’s stock price dropped today.

US tech giant Nvidia lost over a sixth of its value after the surging popularity of a Chinese artificial intelligence (AI) app spooked investors in the US and Europe. DeepSeek, a Chinese AI chatbot reportedly made at a fraction of the cost of its rivals, launched last week but has already become the the most downloaded free app in the US.

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,

By Sinéad Carew, Amanda Cooper, Ankur Banerjee NEW YORK/LONDON/SINGAPORE (Reuters) -Investors sold technology stocks across the globe on Monday as they worried that the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of current AI leaders like Nvidia,