Nearly 3% dipped by the Nasdaq Technological Index at Monday’s meeting, as the Chinese ‘wedge’ with artificial intelligence company Deep Seek leaves a ‘heavy shadow’ on the US stock market.

Chinese Startup artificial intelligence (Ai) Deepseek International stock markets ‘shakes’, raising questions about America’s technological domination.

Interest increased during the weekend about Deepseek’s latest artificial intelligence model, which is costly efficient, while operating in less advanced chips, questioning the giant valuations of companies such as Nvidia, which has led the world ” “AI shares, as its chips were considered necessary for technology.

It is noted that Nvidia technological giant share records ‘dip’ 16%having already lost more than $ 500 billion in market value, with the title heading to the worst decline ever recorded in the history of the US stock market.

“Deepseek shows that it is possible to develop strong artificial intelligence models at a lower cost »said Vey-Sern Ling, Managing Director of Union Bancaire Privee. “This may potentially derail the investment perception of the whole chain of artificial intelligence.”

Deepseek’s artificial intelligence model – founded by Liang Wenfeng – is widely considered competitive compared to the latest proposals by Openai and Meta Platforms. Deepseek application, praised by investor Marc Andreessen as ‘One of the most amazing and impressive discoveries’shows its work and reasoning as it addresses the written query or prompting of a user. The product released last week is now at the top of the Apple App Store rankings, with users praising its transparency.

Deepseek product “It challenges the significant capital costs and operating expenses that Silicon Valley has undertaken and this is the most appropriate way to approach the tendency of artificial intelligence”said Nirgunan Tiruchelvam, head of the Singapore -based Consumer and Internet Department. “It calls into question the huge resources dedicated to artificial intelligence”.

In the stock market market USANasdaq’s Futures recorded up to 5% dip and the S&P 500 to 2%. European stock markets also record losses, with the technology sector declining 4%. The NASDAQ 100 and the technological suggestions of the European Stoxx 600 are heading for the “deletion” of capitalization of about 1 trillion. dollars, if purchases’ losses continue.

Nasdaq’s falls fall comes at the beginning of a long week for the corporate results of major technology companies, such as Apple and Microsoft. Increasing profits is expected to be slowed, while valuations remain inflated, once again raising concern about the big rally in the industry with the backdrop of artificial intelligence.

Deepseek’s release raises new doubts, questioning the view that its artificial intelligence technology China Located years behind US counterparts. Washington’s trade restrictions had kept the most innovative chips away from China’s hands, but the Deepseek model was manufactured using open source technology that is easily accessible.

“While today’s leaders of space, such as Nvidia, have a strong presence in the space, this is a reminder that the sovereignty of artificial intelligence cannot be taken for granted.”said Charu Chanana, Saxo Markets’s head investment strategic analyst. “The appearance of the Chinese Deepseek shows that competition is intensifying, and although it may not be a major threat now, future competitors will evolve faster and question the established companies faster. This week’s profits will be a huge test. “