Chinese AI company DeepSeek reminded Western investors about global competition in the artificial intelligence race, particularly in China, where large language models can be developed and trained at a fraction of the cost incurred by Mag7 companies. This sparked a global selloff across the AI complex as investors worry over "negative capex impact" and ROI concerns over hefty AI investments.

In a separate development, DeepSeek's API landing page posted this warning around noon: "Due to large-scale malicious attacks on DeepSeek's services, registration may be busy. Please wait and try again. Registered users can log in normally. Thank you for your understanding and support."