AI-themed ETFs plunge in wake of DeepSeek news


Deepseek logo is seen in this illustration taken January 27, 2025. REUTERS/Dado Ruvic/Illustration

(Reuters) -Prices of exchange-traded funds with outsize exposure to Nvidia plunged on Monday in reaction to news that a Chinese startup has launched a powerful new artificial intelligence model.

Technology market insiders like venture capitalist Marc Andreessen have labeled the emergence of year-old DeepSeek's model a "Sputnik moment" for U.S. AI companies, most of whose share prices slid on news that downloads of DeepSeek already have overtaken those of U.S. rival ChatGPT on Apple's online app store.

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