01/28/2025

U.S. Tech Shares Recover Some Losses from Steep DeepSeek Selloff

Investors ponder AI race between China, U.S.

On Tuesday, technology shares regained some ground lost and AI chip leader Nvidia rose more than 6 percent after the previous day's record-breaking wipeout sparked by a low-cost Chinese artificial intelligence (AI) model that threatens the dominance of U.S. rivals.

On Monday, Nvidia lost about 17 percent or close to $593 billion in market value - a record one-day loss for any company, while shares of companies in semiconductor, power and infrastructure companies exposed to AI collectively shed more than $1 trillion.

Monday's selloff was prompted by the release of a free AI assistant launched by China's DeepSeek last week that the startup said uses less data at a fraction of the cost of incumbent services. That garnered attention worldwide, although skepticism, opens new tab lingers over DeepSeek's cost claims.

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