Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek.

The Chinese AI service has Wall Street worried that it will be cheaper than expected to develop models. But as chip stocks sink, some analysts see a silver lining.

Nvidia Corp. and ASML Holding NV shares plunged early Monday as Chinese artificial intelligence startup DeepSeek appeared to provide comparable performance to Western chatbots at a fraction of the price.

DeepSeek topped the Apple AppStore chart and sparked fears the Chinese company is quickly catching up with OpenAI's ChatGPT while costing far less.

KEY TAKEAWAYS A slew of artificial intelligence stocks, including chip maker Nvidia, are tumbling in premarket trading Monday after Chinese startup DeepSeek released a cutting-edge AI model that runs on less-advanced chips and at a lower cost than U.