While companies like DeepSeek may find success in certain market segments, they face an uphill battle against this massive capital advantage. In other words, claims that demand for Nvidia's premium chips will collapse simply don't align with market realities and the trajectory of AI development.

Technology stocks were rocked to their core Monday after claims made by a Chinese start-up threatened to upend the existing artificial intelligence (AI) paradigm.

In what marks the largest single-day drop in stock market history, Nvidia's valuation has been hit by China's answer to ChatGPT.

Several experts, including Elon Musk and Howard Lutnick, nominated to head the US Commerce Department, recently suggested that DeepSeek had found ways to avoid US sanctions. Analysts suspect that Deep

The DeepSeek chatbot, known as R1, responds to user queries just like its U.S.-based counterparts. Early testing released by DeepSeek suggests that its quality rivals that of other AI products, while the company says it costs less and uses far fewer specialized chips than do its competitors.

DeepSeek claims it costs them less than $6 million to train its latest AI models, while it costs ChatGPT $100 million. DeepSeek is able to charge only $0.14 per 1 million input tokens, compared to $15 at OpenAI. Token input pricing has to do with the amount of text that goes into training the AI language models.

The emergence of China-based AI app DeepSeek sent shares plummeting on Monday for many U.S. tech giants, including chipmaker Nvidia and AI-backer Microsoft.

NVIDIA, the world's most valuable company until Monday, lost $600 billion of market value in a single day, the biggest in US stock history.

South Korea will ask Chinese startup DeepSeek how it manages users' personal information, Seoul's data watchdog said Friday, after the company launched its powerful new AI chatbot this week.

With new US firm Stargate announcing a half trillion-dollar investment in artificial intelligence, and China's DeepSeek shaking up the industry, what does it all mean for AI's environmental impact?