DeepSeek sends US tech stocks spiralling but investors remain optimistic about AI

'By no means the end of the party for AI’

US tech companies took a hit on Monday (27 January) after Chinese startup DeepSeek launched an artificial intelligence tool said to compete against Western-backed models at a fraction of the research and development cost.

Indices began to digest news about DeepSeek's R1 model at the beginning of the week, with the tech-heavy Nasdaq Composite ending at 19,341 on Monday's closing, 3% lower than on Friday, according to data from MarketWatch. At the time of reporting, the index's futures were trading slightly higher at 21,405.7. UK attracts over £14bn of private investment in AI in two days S&P 500 futures have similarly seen a mild recovery from Monday's market shock, trading 0.4% higher than when markets closed on Monday evening. Meanwhile, Nvidia experienced the worst one-day fall in a company's m...