Key Takeaways AI stocks had a volatile week as Wall Street reckoned with the implications of a sophisticated, cost-efficient AI model from Chinese start-up DeepSeek.Semiconductor stocks such as Nvidia and Broadcom sold off on Monday as investors worried DeepSeek's efficiencies would temper enthusiasm for AI infrastructure spending.

DeepSeek has launched an AI model that was reportedly developed with significantly less computational power than traditional methods. Shares of Nvidia are under pressure amid concerns that DeepSeek's methods may undermine demand for its high-performance GPUs.

Here’s what you need to know about DeepSeek, the Chinese AI startup that rattled markets as its app dethroned OpenAI's as the most-downloaded free app in the U.S. on Apple.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

Investors should get familiar with it since it is now causing a market-wide selloff. It is a good idea to know the competition and what you’re working with before you invest in any AI stock. DeepSeek is now the place to start, as there’s a good chance DeepSeek’s revolutionary breakthrough will shape the trends in the coming months.