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Why DeepSeek is hitting tech stocks hard, including Nvidia's

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China 's AI startup DeepSeek has captured the attention of enthusiasts ever since its launched its latest reasoning AI model.

It's just as smart or even more capable than competing models, including OpenAI 's top model, while charging a lot less for AI access.

Early on Monday , Nvidia stock went down 13% in premarket trading at one point, threatening to wipe more than $500 billion off of Nvidia 's market cap.