Global investors dumped tech stocks amid the emergence of a low-cost Chinese AI model, leaving Nvidia with a record one-day loss for any company on Wall Street.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

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.