Investors freaked out as China-based DeepSeek's AI chatbot became a threat to Nvidia, but some strategists say this will be a net positive for stocks.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

US tech stocks were steady on Tuesday after they slumped on Monday following the sudden rise of Chinese-made artificial intelligence (AI) app DeepSeek. Shares in chip giant Nvidia rose by 8.8%, having slumped on Monday, as experts said the AI selloff may have been an over-reaction.

By some measures, Boston’s startup ecosystem has been left far behind Silicon Valley in the race to develop artificial intelligence. But the shocking emergence of Chinese AI chatbot DeepSeek could actually help Boston catch up.

A frenzy over an artificial intelligence chatbot made by Chinese tech startup DeepSeek was upending stock markets Monday and fueling debates over the economic and geopolitical competition between the U.

DeepSeek founder is now considered an 'AI hero' in China, following the recent announcements made by the company that changed the AI race.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

Chinese AI assistant DeepSeek has become the top rated free app on Apple's App Store in the US and elsewhere, beating out ChatGPT and other rivals.

At least three other companies including those backed by Alibaba and Tencent released updates to their applications in recent weeks.