Single-stock ETFs betting heavily on Nvidia's blistering rally plunged overnight after tracking losses logged by the chip darling.

Nvidia (NVDA) stock plunged 16% Monday afternoon after Chinese artificial intelligence startup DeepSeek’s latest model raised questions about American competitiveness in the AI space.

Nvidia Corp., the biggest provider of chips used to train artificial intelligence software, said a new model released by Chinese startup DeepSeek is an “excellent AI advancement” that complies with US technology export controls.

According to a paper authored by the lab, the DeepSeek-R1 model outperforms cutting-edge models such as OpenAI’s o1 and Meta’s Llama AI models across multiple benchmarks.

DeepSeek stunned the tech world with the release of its R1 "reasoning" model, matching or exceeding OpenAI's reasoning model for a fraction of the cost.

By Sinéad Carew, Amanda Cooper, Ankur Banerjee NEW YORK/LONDON/SINGAPORE (Reuters) -Global investors dumped tech stocks on Monday as they worried that the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of AI leaders like Nvidia,