Investors were looking to Microsoft and Meta to provide reassurance that they will keep spending heavily on Nvidia chips.

Recently, DeepSeek stated that its models match or surpass its main American rivals at a fraction of the cost, including Meta’s own Llama models, challenging the prevailing belief that scaling AI requires vast computing power and investment.

Meta's Mark Zuckerberg has moved to encourage optimism after DeepSeek’s AI models sent out multiple shockwaves that rocked Wall Street.