US technology companies fell in pre-market trading, as Chinese startup DeepSeek raised concerns about competitiveness in artificial intelligence and America’s leadership in the sector, triggering a global sell-off.
Chip designer stocks Nvidiaa big beneficiary of the AI hype, was down 9.84% at 05:11 a.m. ET before the market opened. Netherlands-based chip companies ASML and ASM International Japanese chip-related stocks fell 10.59% and 14.94% respectively in European trading, while in Asia, Japanese chip-related stocks fell broadly.
DeepSeek launched a free and open-source model of the Big language in late December, claiming it was developed in Only two months At a cost of less than $6 million, it is much lower than that demanded by Western counterparts. Last week, the company released a logic model as well It is said that I excelled OpenAI’s latest in several third-party tests.
The developments have raised questions about the amount of money major technology companies are investing in artificial intelligence models and data centers.
“DeepSeek clearly does not have access to as much computing as the U.S. super-expanders, and has somehow managed to develop a model that appears very competitive,” Srini Bagori, a semiconductor analyst at Raymond James, said in a note on Monday.
— CNBC’s Li Yingshan and Michael Bloom contributed to this story.
This breaking news story is being updated.
