A Chinese AI startup, DeepSeek has created an advanced language model rivalling top AI systems, achieving this at a significantly typical cost.

This major development sparked concerns about the future profitability of US tech firms, especially in microchips and AI sectors, leading to a significant decrease in their stock price and a substantial loss in US market value.

Read More: DeepSeek Dethrones OpenAI’s ChatGPT on Apple’s App Store in the United States

The market suffered nearly a $2 trillion loss in one day, with major tech stocks like Nvidia dropping by 12%.