A shocking Chinese AI advancement called DeepSeek is sending US stocks plunging
CNN
US stocks were set for a steep selloff Monday morning after a surprise advancement from a Chinese artificial intelligence company, DeepSeek, threatened the aura of invincibility surrounding America’s technology industry.
US stocks were set for a steep selloff Monday morning after a surprise advancement from a Chinese artificial intelligence company, DeepSeek, threatened the aura of invincibility surrounding America’s technology industry. DeepSeek, a one-year-old startup, last week showed off a stunning capability: It presented a ChatGPT-like AI model called R1, which has all the familiar abilities, operating at a fraction of the cost of OpenAI’s, Google’s or Meta’s popular AI models. The company said it had spent just $5.6 million training its newest AI model, compared with the hundreds of millions or billions of dollars US companies spend on their AI technologies. That sent shockwaves through the tech sector Monday. Meta last week said it would spend upward of $65 billion this year on AI development. Sam Altman, CEO of OpenAI, last year said the AI industry would need trillions of dollars in investment to support the development of in-demand chips needed to power the electricity-hungry data centers that run the sector’s complex models. Mark Andreesen, a Trump supporter and one of the world’s leading tech investors, called DeepSeek “one of the most amazing and impressive breakthroughs I’ve ever seen,” in a post on X. The stunning achievement from a relatively unknown AI startup becomes even more shocking when considering that the United States for years has worked to restrict the supply of high-power AI chips to China, citing national security concerns. That means DeepSeek was able to achieve its low-cost model on under-powered AI chips. US tech stocks got hammered Monday morning. Nvidia (NVDA), the leading supplier of AI chips, whose stock more than doubled in each of the past two years, fell 12% in premarket trading. Meta (META) and Alphabet (GOOGL), Google’s parent company, were also down sharply, as were Marvell, Broadcom, Palantir, Oracle and many other tech giants.
The story of AI in the 2020s has gone something like this:
Workers at a Pennsylvania Whole Foods store voted on Monday to unionize, forming the first union in the organic grocery chain owned by Amazon.
The Pulitzer Prize board is asking a judge to hit pause on a defamation case President Donald Trump filed against until his presidency is over, using Trump’s own legal arguments against him.
A new CEO took the reins at Kohl’s this month, hoping to reverse a long losing streak at America’s largest department store chain. But after years of declining sales, a sharp drop in stock value and waning customer trust, Ashley Buchanan could find the chain’s problems hard to turn around.
DeepSeek R1, the surprisingly efficient and powerful Chinese AI model, has taken the technology industry by storm and is rattling nerves on Wall Street.
Celebrating football’s biggest game can bring big appetites. Buying Super Bowl fixings this year will cost about the same as last year, but the prices of individual products may seesaw, according to a Wells Fargo report.
Beginning Monday, several policies are returning to Starbucks’ locations in United States and Canada — part of CEO Brian Niccol’s Herculean task of reversing sales and traffic declines at the struggling institution.
US stocks were set for a steep selloff Monday morning after a surprise advancement from a Chinese artificial intelligence company, DeepSeek, threatened the aura of invincibility surrounding America’s technology industry.
Wildfires, raging floods, tornadoes and hurricanes can obliterate your home, but not your mortgage.
Monday marks the first day that the IRS will start accepting and processing 2024 income tax returns.
Automaker Kia America is recalling more than 80,000 vehicles due to floor wiring beneath the front passenger seat that can become damaged and prevent airbags and seat belts from deploying properly.
Graduating college no longer gives students a leg up in the workforce. They need real world experience, too. Now, colleges are stepping up their internships and co-op programs to fill the increasing need.
Federal economic data is one of the purest forms of infrastructure, says Erica Groshen, a former commissioner at the Bureau of Labor Statistics.
Ben & Jerry’s on Friday accused its parent company Unilever of suppressing a social policy statement that mentioned President Donald Trump.
Eggs are estimated to cost another 20% throughout 2025 because of new avian flu outbreaks.
President Donald Trump on Wednesday batted down the national security concerns surrounding TikTok, saying, “Is it that important for China to be spying on young people? On young kids watching crazy videos?”
Some of the biggest brands in America, including Amazon, Meta, Walmart and McDonald’s, have recently changed or ended their diversity, equity and inclusion (DEI) programs. But e.l.f. Beauty, a popular cosmetics brand, is a rare company vocally touting its diversity efforts and inclusive marketing like its “So Many Dicks” campaign.
The point of Donald Trump’s jab at Bank of America CEO Brian Moynihan was not just to dunk on one prominent financier. It was also a warning to every executive at Davos, and everyone watching the livestream around the world, that any slight — real or imagined — against his base won’t be tolerated.