US tech giant Nvidia lost over a sixth of its value after the popularity of a Chinese artificial intelligence app (AI) spooked investors in the US and Europe.
DeepSeek, the Chinese AI chatbot launched last week and has already become the most downloaded free app in the US.
AI chip giant Nvidia's shared plunged by 17% by the time the US markets closed on Monday. It lost nearly $600billion (£482bn) in market value which, according to Bloomberg, is the biggest drop in the history of the US stock market.
Other tech firms connected to AI, including Microsoft and Google, also saw their values tumble in the wake of DeepSake's sudden rise.
DeepSeek was reportedly developed for a fraction of the cost of its rivals. ChatGPT-maker OpenAI spent $5billion last year alone while DeepSeek developers say it built its latest model for $5.6million.
President Donald Trump has called the sudden rise of the company "a wake-up call" for the US tech industry.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 43-points at 8,525 shortly after opening this morning.
Brent crude oil futures were up 0.57%, trading at $77.65 a barrel.
Companies reporting today
28-Jan | |
|---|
A G Barr | Q4 Trading Statement |
Harworth Group | Full Year Trading Statement |
LVMH* | Full Year Results |
Pets at Home* | Q3 Trading Statement |
SSP Group | Q1 Trading Statement |
SThree | Full Year Results |