Broadcom stock is struggling for direction Tuesday after the chipmaker fell sharply Monday following the release of DeepSeek, a cheap AI chatbot.

The release of DeepSeek’s open-source AI chatbot caused a sharp sell-off in Nvidia and Broadcom, shifting market sentiment in favor of AI users.

The Chinese chatbot DeepSeek demolished the US stock market, bringing down the capitalization of American companies by a trillion dollars. This is reported by the world media.

Japanese tech firms sank Tuesday following a rout on Wall Street after China's DeepSeek chatbot upended the artificial intelligence sector and sparked questions about huge investments by US titans. Tokyo-listed companies linked to the artificial intelligence sector tanked for a second straight day as investors tracked a rout on Wall Street that saw Nvidia crumble 17 percent,

The popularity of China's DeepSeek's chatbot appears to have shattered a widespread belief that developing artificial intelligence requires many billions of dollars of investment as has been in the case of US AI models.

DeepSeek is an artificial intelligence company which develops open-source large language models. Based in Hangzhou, it is owned and solely funded by the Chinese hedge fund High-Flyer.

US tech giant Nvidia lost over a sixth of its value after the surging popularity of a Chinese artificial intelligence (AI) app spooked investors in the US and Europe. DeepSeek, a Chinese AI chatbot reportedly made at a fraction of the cost of its rivals, launched last week but has already become the most downloaded free app in the US.

The same tech companies that have benefitted from the AI frenzy in the past year were getting pummeled before markets even officially opened on Monday.

Nvidia suffered the biggest-ever market value drop in history, writes Anthony Cuthbertson, with the Chinese startup inflicting more than $1 trillion in total losses

DeepSeek is a Chinese AI firm specializing in large language models (LLMs). Founded in 2023 by Liang Wenfeng, a co-founder of hedge fund High-Flyer, the company develops open-source AI models.

Chinese startup DeepSeek's artificial intelligence chatbot is not revolutionary enough to upend the western artificial intelligence industry as the total addressable market for AI compute is still expected to double in the long term,

Trump argued DeepSeek could be a 'positive' for US tech giants, adding: 'instead of spending billions and billions, you'll spend less, and you'll come up with hopefully the same solution.'