DeepSeek Debuts AI Challenger Amid Market Jitters

U.S. stock futures and Asian markets, excluding China, fell due to DeepSeek's AI launch, which rivals ChatGPT. Meanwhile, the dollar ascended as Trump threatened tariffs on Colombia, leading to market volatility. Concerns over U.S. tech dominance and global economic shifts have emerged.

In a dramatic turn of events, U.S. stock futures and Asian shares outside China have taken a hit as investors assess the impact of Chinese startup DeepSeek's new AI model, poised to challenge the dominance of OpenAI's ChatGPT. The market tremors highlight the potential reshaping of the tech landscape.

DeepSeek's entrance into the AI arena has raised questions about the future of U.S. tech companies, with their valuations facing renewed scrutiny. Meanwhile, President Donald Trump's threats of sanctions against Colombia, just before a last-minute deal, further fueled market volatility, propelling the dollar upward.

As markets remain jittery, with global trading partners confronting potential tariffs, analysts predict temporary dollar strength. This comes as various global markets, including South Korea and Taiwan, are closed for Lunar New Year, adding another layer of complexity to this turbulent financial week.

(With inputs from agencies.)