The industry expects the resource-light new model could usher in a wave of more efficient AI models, hurting demand for AI hardware.

U.S. tech stocks plunged on Monday, amid a wider market sell-off. The culprit: DeepSeek, a Chinese artificial intelligence company that last week introduced a new — and low-cost — model into the red-hot AI tech market.

Stock markets are slowly beginning to bounce back from Monday’s AI stock-driven selloff, as investors recover from their shock over the “Sputnik moment,” the discovery that China has an AI startup that can build large language models much,

Rebounding tech stocks drove U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it. The S&P 500 climbed 0.