Shares of major technology companies leading the artificial intelligence (AI) race tumbled on Monday morning amid investor concerns about new Chinese AI models that are growing in popularity.
Nvidia, the powerhouse chipmaker fueling the AI boom, has seen its shares fall 12.6% since Friday's market close. Fellow Chipmaker Advanced Micro Devices (AMD) also fell 5% on Monday morning.
Stocks in several semiconductor companies were also removed. ARM was down 8%, ASML Holding was down 7% and Taiwan Semiconductor Manufacturing Company (TSMC) was down 10.3%.
Investor fear has also affected tech companies that have been spending heavily on AI. Shares fell 8.3% as Oracle is one of three companies leading the Trump administration's new multibillion-dollar Stargate AI project.
Microsoft was down 3.3% as of Monday morning, as was Google's parent company Alphabet. Amazon stock also fell 1.7%.
Investor panic follows the release of a new AI model from Chinese startup DeepSeek. This model quickly gained popularity recently, rising to the top of Apple's App Store and overtaking Openai's ChatGpt.
The startup reportedly spent just $5.6 million to train its latest model. This is just a fraction of what American AI companies have been spending on building their own models. Deepseek also relied on degraded chips from Nvidia due to strict US export controls.
