The selloff stems from weekend panic over last week’s release from the relatively unknown Chinese firm DeepSeek of its competitive generative AI model rivaling OpenAI, the American firm backed by Microsoft and Nvidia, and its viral chatbot ChatGPT, with DeepSeek notably running at a fraction of the cost of U.S.-based rivals.

President Donald Trump said DeepSeek’s AI advances should be a “wake-up call” for the U.S.

The sudden rise of a Chinese start-up called DeepSeek sent U.S. tech stocks tumbling Monday. DeepSeek says it created an artificial intelligence model in much less time and for much less money than U.