The Nasdaq could face market-cap losses of nearly $1 trillion if premarket declines hold into the close of trading.

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek.

DeepSeek has introduced a new generation of AI models that directly compete with the ones developed by established US companies.

Nvidia is once again the most valuable U.S. company, outranking Apple for the first time since late November. A rise in the chip maker's stock meant it ended Tuesday with a market capitalization of $3.

DeepSeek topped the Apple AppStore chart and sparked fears the Chinese company is quickly catching up with OpenAI's ChatGPT while costing far less.

DeepSeek, founded by quant fund chief Liang Wenfeng released its latest AI model just last week and is now seen as a competitor to OpenAI and Meta Platforms Inc