Chinese startup DeepSeek claims to offer competitive AI models at lower costs, raising doubts about U.S. tech giants' investments in AI. Microsoft and Meta defend their significant spending, highlighting its importance for long-term strategic advantage amidst increasing demand for AI solutions.

Technology stocks regained ground on Tuesday, a day after a low-cost Chinese AI model rattled markets, while traders rotated back into the dollar from safe-haven currencies. The tech rebound boosted Wall Street's main stock indices,

Technology stocks plunged Monday after China’s DeepSeek announced it had trained a sophisticated AI model at a fraction of the cost of Silicon Valley firms, sparking a sharp reversal in the AI rally.