Tech stocks fall sharply as China’s DeepSeek sows doubts about AI spending

Tech stocks experienced a sharp decline on Monday following advances by Chinese AI start-up DeepSeek, which showcased a language AI model comparable to US rivals with fewer Nvidia chips. This raised concerns about Silicon Valley’s AI hardware investments and potential lower returns. The market reacted with Nvidia, Microsoft, and Meta shares falling, while Chinese tech stocks saw gains. DeepSeek’s developments could ultimately benefit AI chipmakers, making AI adoption more accessible and affordable for businesses and consumers.

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