DeepSeek: Chinese chatbot sends shockwaves through US stock market

China’s launch of a cheaper, more efficient version of ChatGPT could challenge Silicon Valley’s dominance in the AI race

A DeepSeek artificial intelligence logo on a laptop
(Image credit: Photographer: Andrey Rudakov/Bloomberg via Getty Images)

The S&P 500 closed 1.5% lower on Monday, driven by a sell-off in the technology sector. The tech-heavy Nasdaq 100 shed 3.0%.

It comes after Chinese company DeepSeek launched a new model of its AI chatbot this month – a competitor to ChatGPT – which reportedly has lower development costs and better performance on some mathematical and logical processes.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.