News from China upset U.S. markets Monday and disrupted the frenzy that had built up around artificial intelligence.
A company called DeepSeek said it had developed a large language model that can compete with U.S. AI giants but at a fraction of the cost. DeepSeek had already hit the top of the chart for free apps on Apple’s App Store by Monday morning, and analysts said such a feat would be particularly impressive given how the U.S. government has restricted Chinese access to top AI chips.
Nvidia, Broadcom and Google’s parent company Alphabet were among the high-flying stocks that fell to earth, at least for now. The noise in the tech sector obscured some solid gains in other parts of the market.
Here’s a look at DeepSeek’s impact on the financial markets, by the numbers:
5.6%
Monday’s decline in the S&P 500 tech sector, the biggest drop in the index since …