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<\/p>\nStunning AI advances from Chinese startup DeepSeek have sent tech stocks tumbling across the US and Europe.<\/p>\n
DeepSeek released a free chatbot and new open-source AI models last week. Within days, the chatbot had overtaken ChatGPT to reach the top spot on the App<\/a>le App Store\u2019s free app rankings.<\/p>\n The new R1 models sent further shockwaves through the AI world. R1 promised performance to rival OpenAI top\u2019s reasoning model \u2014 at just a fraction of the cost. Marc Andreessen, one of the world\u2019s most powerful VCs, called the release \u201cAI\u2019s Sputnik moment.\u201d<\/p>\n The markets were also astounded. Shaken by the threat of a powerful, low-cost AI challenger from China, shares in US tech titans plummeted on Monday. Chip designer Nvidia set an alarming example. The chip designer suffered the largest rout in stock market history<\/a>.<\/p>\n European semiconductor firms were also hit hard. Shares in Dutch chip leader ASML \u2014 the continent\u2019s most valuable public tech company \u2014 slumped by as much as 12%.<\/p>\n Semiconductor firms Besi and Asm International also endured double-digit drops<\/a>. Yet chip companies were not the only European businesses to feel a painful impacts.<\/p>\n The continent\u2019s power equipment makers were also clobbered. Stocks plummeted particularly sharply at Germany\u2019s Siemens Energy and France\u2019s Schneider Electric.<\/p>\n Amid the market torment, DeepSeek has also sparked excitement. By offering powerful yet affordable open-source models, the startup could accelerate the spread of AI\u2019s benefits across the world. For the sector\u2019s established leaders, however, the landscape has been shaken.<\/p>\n<\/p><\/div>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more like this article, you can visit our Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n