Monday’s more than $500 billion loss for Nvidia followed panic surrounding DeepSeek’s AI model running on far less of Nvidia’s coveted GPUs than its American counterparts.

Nvidia Corp (NASDAQ: NVDA) is taking a material hit this morning as investors respond to the launch of a Chinese startup’s highly efficient and cost-effective AI model. DeepSeek claims to have spent less than $6.

Wall Street is tumbling Monday on fears that the market's winners who have feasted on the artificial-intelligence frenzy are under threat from a competitor in China that can do similar things for much cheaper.

DeepSeek topped the Apple App Store chart and sparked fears the Chinese company was quickly catching up with OpenAI's ChatGPT while costing far less.

By Nikhil Sharma (Reuters) -European shares slid on Monday as the technology sector joined the retreat in other markets after China's upgraded low-cost, low-power artificial intelligence (AI) model sparked worries about the profits of rivals and the need for costly chips.