Wall Street was in a frenzy! The immense popularity of DeepSeek caused a crash, leading to a decline in the US stock market.

On Monday evening, U.S. stocks opened sharply lower. Some investors predicted that the market would lose more than $1 trillion in a single day! As of the time of writing, the Nasdaq fell more than 3%, the Dow Jones Industrial Average fell 0.42%, and the S&P 500 index fell 1.80%. All U.S. tech stocks plunged, with the Philadelphia Semiconductor Index falling more than 6%. Chip stocks led the decline, with Broadcom falling more than 12%, Nvidia falling more than 11%, and TSMC falling more than 10%. The U.S. tech stock rout was related to the low-cost AI model launched by DeepSeek. On the news front, DeepSeek, which has been popular worldwide recently, launched a new model that achieved performance comparable to OpenAI o1 at a very low cost, raising concerns about the valuation of major tech AI companies. In a nutshell, the new model of DeepSeek is comparable to OpenAI o1 in performance, but its cost is less than a tenth of the latter. Some analysts believe that DeepSeek achieved top-notch model performance with limited hardware resources, reducing its reliance on high-end GPUs, and its low training cost indicates that the demand for computing power for large AI models will drop significantly. As a result, U.S. chip stocks were hit first. On January 27, DeepSeek surpassed ChatGPT in the free app download list in the U.S. zone of Apple's App Store and ranked first. It also topped the list in the Chinese zone. DeepSeek, which has been continuously popular, suffered multiple outages. At around 8:00 p.m. on January 27, the DeepSeek service status page showed that the DeepSeek website was unavailable, and the company was investigating the issue. Several netizens said that DeepSeek had crashed. Real testing found that DeepSeek could not answer dialogue questions at the moment. At 8:55 p.m., the dialogue service of DeepSeek was restored, but the account service still had problems, and users may not be able to log in or register. At 9:05 p.m., DeepSeek updated that it would continue to monitor the fault. The sudden emergence of DeepSeek's new model has ignited Chinese tech assets. While U.S. tech stocks plunged, Chinese tech stocks rallied. As of the time of writing, the Nasdaq China Dragon Index rose more than 0.5%. As of the time of writing, Kingsoft Cloud rose more than 10%, and Baidu Group rose more than 4%.