DeepSeek AI App Triggers Global Tech Stock Selloff

The rise of the Chinese AI application DeepSeek has prompted a significant sell-off in tech stocks, with the Nasdaq index dropping nearly 4% on Monday. DeepSeek recently surpassed ChatGPT to become the top free app on Apple's App Store, raising concerns about U.S. dominance in the AI sector and the effectiveness of American export controls on advanced chips. The startup claims it developed its AI model for under $6 million, far less than the billions invested by its American competitors. Major companies like Nvidia, Microsoft, and Oracle saw substantial declines in their stock values, reflecting investor anxiety over potential price competition and profit timelines. While some analysts view this as a premature reaction, others caution that the claims surrounding DeepSeek's capabilities and cost-effectiveness warrant skepticism. The situation underscores a growing uncertainty in the tech market regarding the future of AI investments and competition with Chinese advancements.