Stunning AI advances from Chinese startup DeepSeek have sent tech stocks tumbling across the US and Europe.
DeepSeek released a free chatbot and new open-source AI models last week.
The new R1 models sent further shockwaves through the AI world.
R1 promised performance to rival OpenAI tops reasoning model at just a fraction of the cost.
Marc Andreessen, one of the worlds most powerful VCs, called the release AIs Sputnik moment.
The markets were also astounded.
Nvidia set an alarming example.
The chip designer suffered the largest rout instock market history.
European semiconductor firms were also hit hard.
Semiconductor firms Besi and Asm International also endureddouble-digit drops.
Yet chip companies were not the only European businesses to feel a painful impacts.
The continents power equipment makers were also clobbered.
Stocks plummeted particularly sharply at Germanys Siemens Energy and Frances Schneider Electric.
Amid the market torment, DeepSeek has also sparked excitement.
For the sectors established leaders, however, the landscape has been shaken.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
