U.S.-listed shares of tech giants are gaining some lost ground this morning after a China-based startup shocked the AI world with a powerful LLM. Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.

Rebounding tech stocks are driving U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it. The S&P 500 was 1% higher in late trading and clawing back nearly two-thirds of its earlier drop.

A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over the economic and geopolitical competition between the U.

Key Takeaways U.S. AI stocks sold off Monday as an app from Chinese AI startup DeepSeek dethroned OpenAI's as the most-downloaded free app in the U.S. on Apple.DeepSeek claims its latest model’s performance is on par with that of American AI leaders like OpenAI,

Chinese startup DeepSeek said on Monday it will temporarily limit registrations due to a cyberattack after the company's AI assistant amassed sudden popularity. The startup earlier in the day was also hit by outages on its website after its AI assistant became the top-rated free application available on Apple's App Store in the United States.