Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

Amid ongoing fears over TikTok, Chinese generative AI platform DeepSeek says it’s sending heaps of US user data straight to its home country, potentially setting the stage for greater scrutiny.

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.

DeepSeek has Silicon Valley in awe and stocks in a frenzy.Tech stocks sank in a broad selloff Monday after the Chinese artificial-intelligence upstart said it had trained high-performing AI models cheaply,

News from China upset U.S. markets Monday and disrupted the frenzy that had built up around artificial intelligence.

As of this morning, DeepSeek had overtaken ChatGPT as the top free application on Apple’s mobile-app store in the U.S. Researchers, executives, and investors have been heaping on praise. The new DeepSeek model “is one of the most amazing and impressive breakthroughs I’ve ever seen,