US President Donald Trump warns Chinese startup DeepSeek is a wake-up call for America's technology industry.

The emergence of DeepSeek's low-cost AI chatbot caused shockwaves on Wall Street, with Nvidia losing more than $500bn in market value.

Shares in other major technology firms fell steeply in value when markets opened on Monday. That day DeepSeek said it was hit by a "large-scale malicious attack".

Tech-focused shares in Japan fell on Tuesday, while stock markets in China, South Korea and Taiwan are closed for the Lunar New Year holiday.

The DeepSeek app, which was launched last week, has overtaken rivals including ChatGPT to become the most downloaded free app in the US.

DeepSeek was reportedly developed for a fraction of the cost of its rivals, raising questions about the future of America's AI dominance and the scale of investments US firms are planning.

Source: BBC

BDST: 1014 HRS, JAN 28, 2025
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