DeepSeek sends US stocks plunging on back of Chinese AI advancement [Video]

Tech giant Nvidia has suffered a 17 per cent collapse in a single day, making it the biggest wipeout in US sharemarket history.

The bloodbath equated to an almost $1 trillion collapse in the company’s market cap, which fell from $US2.88 trillion ($4.6 trillion) from $US3.49 trillion at Friday’s close.

DeepSeek has all the familiar capabilities of an AI program, but operates at a fraction of the cost of popular models developed by OpenAI, Google and Meta.

But it wasn’t just Nvidia that suffered on Wall Street: the Nasdaq composite tumbled 3.5 per cent; the S&P 500 fell 1.8 per cent in afternoon trade; and Meta and Alphabet, Google’s parent company, were also down sharply.

Nvidia competitors Marvell, Broadcom, Micron and TSMC all fell sharply, too. Oracle, Vertiv, Constellation, NuScale and other data centre companies tumbled.