A Chinese artificial intelligence start-up sent the stock market right into a tailspin on Monday.
The Nasdaq Composite sank 3.6% shortly after the market opened. The S&P 500 dropped 2.1%. The Dow Jones Industrial Average was down 243 points, or 0.5%.
Driving the steep decline was DeepSeek, a Chinese AI program that climbed to the highest spot on Apple’s App Store. The firm’s free assistant got here out on Jan. 20 and competes shockingly well with OpenAI’s ChatGPT and other popular programs. It also uses cheaper chips and fewer data than rivals.