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.

U.S. President Donald Trump said on Monday that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper,

U.S. officials are looking at the national security implications of the Chinese artificial intelligence app DeepSeek, White House press secretary Karoline Leavitt said on Tuesday. The National Security Council is reviewing the implications of the app,