U.S.-listed shares of tech giants are gaining some lost ground this morning after a China-based startup shocked the AI world with a powerful LLM. Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

A Chinese company’s cut-rate computing solution has upended the tech world, with companies, investors and even the U.S. government trying to understand what it means for the future.

Global investors are worried the emergence of a low-cost Chinese AI model will threaten the dominance of AI leaders.