Tech stocks suffer $1trillion sell-off in US and European markets as DeepSeek rattles investors

Chinese AI startup DeepSeek’s latest model triggered a $1 trillion sell-off in US and European tech stocks, as investors reevaluated the inflated valuations of major American companies.

DeepSeek’s new AI model surged to the top of the Apple App Store over the weekend, challenging more expensive models like OpenAI’s. This raised concerns about the billions being invested by tech giants such as Microsoft, Meta, and Alphabet in AI development.