Donald Trump has said the new Chinese artificial intelligence model DeepSeek should be considered a “wake-up call” for the U.S. tech industry after Nvidia saw almost $600 billion wiped off its market value.

The Chinese start-up DeepSeek’s latest large language model has been described as a ‘Sputnik moment’ for the American tech industry

The sudden popularity of a Chinese artificial intelligence app called DeepSeek pummeled tech stocks and captivated Silicon Valley on Monday, prompting debate in political and tech industry circles about how the United States can maintain its lead in AI.

Jan. 28, 8:45 a.m. EST Shares of the two companies most severely impacted by the DeepSeek reaction, Nvidia and Oracle, rose about 3% apiece in premarket trading, though both American technology firms are still on track to open with a more than 10% weekly loss.

Other technology stocks trading at relatively low valuations to historical levels include Micron, Super Micro and Workday.

Retail investors bought a record amount of Nvidia stock on Monday after concerns over a low-cost artificial intelligence model from Chinese startup DeepSeek stripped 17% off its shares, or $593 billion from its market value.