According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

It feels like this day was always going to come — when all the artificial-intelligence names collapse — but one might have imagined it would come from, say, a profit warning from Nvidia. Instead, it comes from what appears to be an Nvidia consumer, Chinese AI service provider DeepSeek.

A slew of stocks, including chip maker Nvidia, fell Monday after Chinese startup DeepSeek released an AI model that runs on less-advanced chips and at a lower cost than U.S. rivals.

In a matter of days, DeepSeek proved to be so popular as to climb to the top of Apple's App Store, surpassing OpenAI's ChatGPT as the most downloaded app. But for owners of Nvidia stock, and stock traders in general, DeepSeek is on track of becoming a black swan — an unexpected event with extreme consequences.

The Chinese AI service has Wall Street worried that it will be cheaper than expected to develop models. But as chip stocks sink, some analysts see a silver lining.

Nvidia (NVDA) has dominated the tech scene in recent years, riding high on the artificial intelligence (AI) boom. With its powerful GPUs driving advancements in gaming, data centers, and autonomous tech,