Social media exploded in a celebration after the news that a Chinese start-up had made an artificial intelligence tool that was more efficient than any in the United States.

The sudden rise of Chinese AI app DeepSeek has leaders in Washington and Silicon Valley grappling with how to keep the U.S. ahead in the crucial technology.

This isn’t just about the TikTok precedent here. It’s about reciprocity, considering that China doesn’t allow products like ChatGPT, Gemini, Claude, and Meta AI. Apple Intelligence is also unavailable in China, as Apple has to partner with a local AI provider to release it. By the way, TikTok is also unavailable in China.

HONG KONG (AP) — Chinese tech startup DeepSeek ’s new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. in AI development, with many users flocking to test the rival of OpenAI’s ChatGPT.

For the second time in the last month, a Chinese app has skyrocketed to the top spot in Apple’s App Store. The first was Xiaohongshu, or RedNote, which saw a sudden surge in downloads by United States users seeking an alternative to TikTok in anticipation of the ban on that app,

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

News from China upset U.S. markets Monday and disrupted the frenzy that had built up around artificial intelligence

SINGAPORE (Reuters) -Nasdaq futures slumped and technology shares slid in Japan on Monday as surging popularity of a Chinese discount artificial intelligence model wobbled investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.