News from China upset U.S. markets Monday and disrupted the frenzy that had built up around artificial intelligence.
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A company called DeepSeek said it had developed a large language model that can compete with U.S. AI giants but at a fraction of the cost.
DeepSeek had already hit the top of the chart for free apps on Apple’s App Store by Monday morning, and analysts said such a feat would be particularly impressive given how the U.S. government has restricted Chinese access to top AI chips.
Nvidia, Broadcom and Google’s parent company Alphabet were among the high-flying stocks that fell to earth, at least for now. The noise in the tech sector obscured some solid gains in other parts of the market. Here’s a look at DeepSeek’s impact on the financial markets, by the numbers: 5.
6% Monday’s decline in the S&P 500 tech sector, the biggest drop in the index since September 2020. Nvidia was one of eight stocks in the tech sector to post double-digit losses on the day. The decline for the index would have been worse if not for a gain of more than 3% in shares of Apple.
The approximate dec.
