NEW YORK (AP) — Wall Street is tumbling on fears the big U.S. companies that have feasted on the artificial-intelligence frenzy are under threat from a competitor in China. The S&P 500 fell 1.8% in early trading Monday.

Chinese startup DeepSeek reportedly built a sophisticated AI model while using fewer, less powerful Nvidia GPUs than U.S. companies. DeepSeek trained its model very efficiently, but some analysts see that as a positive development that will boost demand for Nvidia GPUs.

While AI stocks may rebound from their DeepSeek-induced market sell-off, the U.S. clearly faces a threat from China in artificial intelligence. What you should know.