U.S. tech stocks tumbled after Chinese startup DeepSeek unveiled a low-cost AI chatbot, sparking concerns about the sky-high valuations of tech giants like Nvidia and Microsoft. Patrick Moorhead, chief analyst at Moor Insights,

Many investors are worried about DeepSeek's latest breakthrough. Its Chinese developers claim to have trained a generative AI model that's on a par with many of the U.S. versions for under $6 million.

Tech stocks took a significant hit on Monday following news of major advancements that have raised concerns in the U.S. about competitive parity in the AI race. Nvidia, a major player in the tech sector,

The broader rally in Chinese tech stocks highlights how DeepSeek's cost-efficient model could spur developments in China's AI sector.

Baidu is making a strategic move to strengthen its position in China’s artificial intelligence race by making its chatbot, Ernie Bot, free to all users starting April 1. The decision signals a shift in the company’s approach as it grapples with intensifying competition from emerging players like DeepSeek and ByteDance’s Doubao.