Shares of Nvidia ( NVDA -5.29%) were sinking Wednesday. The company's stock fell 6.2% as of 2:20 p.m. ET, but lost as much as 6.9% earlier in the day. The move comes as the S&P 500 ( ^GSPC -0.39%) and Nasdaq Composite ( ^IXIC -0.54%) lost 0.8% and 1.1%, respectively.

Chinese startup DeepSeek's artificial intelligence challenges major U.S. tech companies like Meta and OpenAI. Here's why.

DeepSeek, the new player on the scene, is a Chinese company that has been making huge waves in AI development. Its powerful technology could change things such as healthcare, finance – and even the way we interact with the internet. Investors are excited because they see DeepSeek as a potential leader in shaping the next generation of AI tools.

Nvidia stock trades lower, ASML rises after fourth-quarter bookings top analysts’ forecasts, and Wall Street awaits quarterly earnings Wednesday from Tesla, Microsoft, and Meta Platforms.

Despite the negative financial impact, Nvidia praised DeepSeek’s breakthrough. “DeepSeek is an excellent A.I. advancement and a perfect example of test time scaling,” a company spokesperson told Observer in a statement.

There’s been an escalation in the generative AI large language model “wars” as Alibaba Qwen 2.5 launched Wednesday. This latest AI salvo from China-based Alibaba is directly aimed at its in-country rival DeepSeek, which launched its own AI — DeepSeek-V3 — in December and its R1 version earlier this month.

Financial writer sees positive prospects for Alibaba's cloud computing business but warns of competition from other AI players, rating it a cautious buy.

Max's debut is unusual, considering it arrived on the first day of the Lunar New Year holiday, when most Chinese workers

Alibaba Group Holding Limited's new AI model Qwen 2.5-VL could boost its Cloud business growth, outperforming competitors. Click for my BABA stock update.

Mega-cap tech stocks like Microsoft, Meta Platforms, and Alphabet have spent literally billions of dollars to build expensive data centers to power AI filled with expensive Nvidia GPUs. Regardless of whether or not DeepSeek's claims are valid,