U.S.-listed shares of tech giants are gaining some lost ground this morning after a China-based startup shocked the AI world with a powerful LLM. Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

The stock market saw a sharp drop, with the Nasdaq leading the decline, falling nearly 3%, as fears about AI’s future shook investor confidence. The rise of Chinese AI startup DeepSeek, which claims to offer cheaper and equally effective AI solutions,

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,