Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.

House Speaker Mike Johnson (R-La.) and President Trump appeared to take different stances Monday on China's artificial intelligence developments. Why it matters: Interest in Chinese company DeepSeek's rapid advancements in AI sent U.

DeepSeek released an open-source artificial intelligence model in December, saying it took only two months and less than $6 million to create it.