DeepSeek Challenges AI Giants: Market Ripple Effects

Markets and currencies experienced significant fluctuations after Chinese startup DeepSeek launched a free AI model challenging OpenAI's ChatGPT. This move led to a slump in technology shares worldwide, affecting both European and U.S. markets. Concurrently, currency markets reacted to U.S. trade policies amidst President Trump’s tariff threats.

Global markets faced turmoil on Monday as a result of Chinese startup DeepSeek's surprising entry into the AI field, introducing a free model intended to rival OpenAI's ChatGPT.

In response to this technological challenge, European tech shares and U.S. Nasdaq composites fell sharply, giving rise to investor concerns over the future of AI investment strategies. This downturn was accompanied by a dip in the U.S. dollar, nuanced by tensions over potential trade tariffs from President Donald Trump.

Meanwhile, commodities like oil and gold witnessed minor price changes. Cryptocurrency bitcoin dropped significantly, highlighting ongoing volatility amid wide-scale economic uncertainty as central banks prepare to set key monetary policies during a pivotal week for global markets.

(With inputs from agencies.)