U.S. tech stocks, including Nvidia, Oracle and Broadcom, plummeted Monday after Chinese startup DeepSeek said it created an AI system that can compete against chatbots such as OpenAI's ChatGPT at much lower costs.
Major U.S. tech stocks, including Nvidia, Oracle and Broadcom, plummeted Monday after Chinese artificial intelligence startup DeepSeek unveiled a new system that it says can compete against OpenAI's ChatGPT model at a much lower cost. The stock of chipmakers Nvidia and Broadcom plunged about 17%, while the stock price for Oracle declined 14%. The tech sell-off brought the broader stock market down with it. The Standard & Poor's 500 index dropped 1.
very impressive, especially since DeepSeek had to navigate strict chip restrictions from the U.S.,' wrote Wedbush Securities analyst Daniel Ives in a Monday research note. 'It remains to be seen if DeepSeek found a way to work around these chip restrictions rules and what chips they ultimately used, as there will be many skeptics around this issue given the information is coming from China.' The U.S.
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