In Amsterdam, Dutch chipmaking equipment company ASML slid 7%. In Tokyo, Japan’s Softbank Group Corp. lost 8.3% to pull closer to where it was before leaping on an announcement trumpeted by the White House that it was joining a partnership to invest up to $500 billion in AI infrastructure.

The tech-heavy Nasdaq index lost nearly 2.7 percent in early trading, with chipmaker Nvidia down nearly 12 percent.

Major US tech stocks like Nvidia, Microsoft, Meta and Tesla were set for a stunning $1 trillion rout on Monday – as fears over an advanced Chinese artificial intelligence model triggered hysteria from Wall Street to Silicon Valley.

A new Chinese AI model, created by the Hangzhou-based startup DeepSeek, has stunned the American AI industry by outperforming some of OpenAI’s leading models, displacing ChatGPT at the top of the iOS app store,

The company built a cheaper, competitive chatbot with fewer high-end computer chips than U.S. behemoths like Google and OpenAI, showing the limits of chip export control.