China's DeepSeek AI Shakes U.S. Tech

The launch of China's DeepSeek AI app, a competitor to ChatGPT, caused a stir in the tech industry, leading to a 3% Nasdaq drop and a $589 billion loss in Nvidia’s market value. Its success has raised concerns over China’s rising AI capabilities and sparked debates in Silicon Valley and Washington on maintaining the U.S.'s AI leadership. In response, Trump described the app as a "wake-up call," announced potential tariffs on foreign-made chips, and promoted a $100 billion investment in AI infrastructure. However, the app has also faced criticism for censorship aligning with China’s internet restrictions. Despite the market turbulence, analysts suggest this may be a temporary overreaction as U.S. companies still dominate AI innovation.