Deepseek AI News Live Updates: Tech stock sell-off sparked by DeepSeek deepens on Day 2

China’s Deepseek AI News Live Updates: The tech world has been rattled by a little-known Chinese AI startup called DeepSeek that has developed cost-efficient large language models said to perform just as well as LLMs built by US rivals such as OpenAI, Google, and Meta.

DeepSeek claimed that its flagship AI reasoning model, R1, launched earlier this month has “performance comparable” to other proprietary AI models across a host of performance benchmarks. Its ability to replicate (and in some cases, surpass) the performance of OpenAI’s cutting-edge o1 model at a tiny fraction of the cost is what raised alarm bells.

This sowed doubts among investors on whether the US could sustain its leadership in AI by spending billions of dollars in chips. It triggered a broader sell-off in tech stocks across markets from New York to Tokyo, with chipmaker Nvidia’s share price witnessing the largest single-day decline for a public company in US history on Monday.