DeepSeek's emergence is shaking up investor confidence of the AI story that has been lifting the U.S. bull market in the past two years.

DeepSeek, a new Chinese AI chatbot startup is receiving new attention from Silicon Valley after a surprising launch.

The selloff stems from weekend panic over last week’s release from the relatively unknown Chinese firm DeepSeek of its competitive generative AI model rivaling OpenAI, the American firm backed by Microsoft and Nvidia, and its viral chatbot ChatGPT, with DeepSeek notably running at a fraction of the cost of U.S.-based rivals.

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,

In fact, this is a shortsighted view that misses the significant benefits that DeepSeek represents for the U.S. economy and for businesses worldwide. What’s exciting is that the

Investors aren’t ignoring the upsides of cheaper AI models despite Monday’s DeepSeek-inspired stock-market panic.