Key Takeaways AI stocks had a volatile week as Wall Street reckoned with the implications of a sophisticated, cost-efficient AI model from Chinese start-up DeepSeek.Semiconductor stocks such as Nvidia and Broadcom sold off on Monday as investors worried DeepSeek's efficiencies would temper enthusiasm for AI infrastructure spending.

DeepSeek, a Chinese artificial intelligence (AI) start-up, is sending shock waves through the U.S. tech sector by demonstrating its latest AI assistant, which achieves performance comparable to or even surpassing some of the world's best chatbots.

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Here’s what you need to know about DeepSeek, the Chinese AI startup that rattled markets as its app dethroned OpenAI's as the most-downloaded free app in the U.S. on Apple.

Investors should get familiar with it since it is now causing a market-wide selloff. It is a good idea to know the competition and what you’re working with before you invest in any AI stock. DeepSeek is now the place to start, as there’s a good chance DeepSeek’s revolutionary breakthrough will shape the trends in the coming months.

Shares of Apple charged higher on Monday, bucking the trend as its large-cap tech peers tumbled on concerns about overspending on AI.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

The startup DeepSeek was founded in 2023 in Hangzhou, China and released its first AI large language model later that year. Its CEO Liang Wenfeng previously co-founded one of China’s top hedge funds, High-Flyer, which focuses on AI-driven quantitative trading.