Closing summary
US technology stocks remained volatile on Wall Street after Monday’s heavy sell-off sparked by the launch of a new popular Chinese version of ChatGPT, in a challenge to US dominance in the artificial intelligence race.
Shares in Nvidia, a leading US maker of the computer chips that power AI models, see-sawed: they fell a further 2% before trading slightly higher, up a little over 2% at time of writing. This came after Monday’s near-17% slump that wiped nearly $600bn off its market value, in the biggest single day market cap loss in history.
The tech-heavy Nasdaq rose by 0.9% following Monday’s 3% drop, while the broader S&P 500 gained about 0.5%.
Donald Trump has said that the launch of a chatbot by China’s DeepSeek is a “wake-up call” for US tech firms in the global race to dominate artificial intelligence.
Experts have urged caution over rapidly embracing the Chinese artificial intelligence platform DeepSeek, citing concerns about it spreading misinformation and how the Chinese state might exploit users’ data.
Here are today’s other main stories:
Experts urge caution over use of Chinese AI DeepSeek
Experts have urged caution over rapidly embracing the Chinese artificial intelligence platform DeepSeek, citing concerns about it spreading misinformation and how the Chinese state might exploit users’ data.
The new low-cost AI wiped $1tn off the leading US tech stock index this week and it rapidly became the most downloaded free app in the UK and the US. Donald Trump called it a “wake-up call” for tech firms.
Its emergence has shocked the tech world by apparently showing it can achieve a similar performance to widely used platforms such as ChatGPT at a fraction of the cost.
Michael Wooldridge, a professor of the foundations of AI at Oxford University, said it was not unreasonable to assume data inputted into the chatbot could be shared with the Chinese state.
He said:
I think it’s fine to download it and ask it about the performance of Liverpool football club or chat about the history of the Roman empire, but would I recommend putting anything sensitive or personal or private on them? “Absolutely not … Because you don’t know where the data goes.
