Wall Street defiant after brutal tech selloff. ‘Market reaction is overdone’

DeepSeek (Credit: Yuki Iwamura—Bloomberg/Getty Images)

• The release of Chinese AI model DeepSeek led to a stock market rout for U.S. tech firms on Monday. However, Wall Street believes the industry will bounce back. 

When Chinese startup DeepSeek released its latest AI model DeepSeek-R1 last week, it upended previous notions of how the technology could be developed. DeepSeek’s new model—rivaling OpenAI’s—had been developed on an alleged $6 million budget—peanuts compared with the billions injected into Silicon Valley’s behemoths.