Technology stocks led gains in Asia-Pacific markets on Wednesday, tracking advances on Wall Street as investor angst ebbed over the emergence of a low-cost Chinese AI model that some see rivalling U.S.

Broadcom’s business relies heavily on their networking products, which are crucial for data transfer in AI systems. If the market for premium AI chips experiences a downturn, amid the rise of DeepSeek, it could create a domino effect, potentially hurting sales of Broadcom’s supporting technologies and components.

OpenAI—which faces multiple lawsuits for using content without permission—accuses DeepSeek of 'distillation,' a technique that use larger models' outputs to improve smaller ones.

OpenAI has accused Chinese AI start-up DeepSeek of using its proprietary models to train an open-source competitor.