Following the market plunge triggered by the release of the DeepSeek chatbot, Nvidia has recovered a large portion of its losses.

Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field.

The tech giants on Wednesday talked up their AI strategies and said they are sticking with ambitious investments in the technology despite the investor panic this week over the ri

DeepSeek’s claim that it has found a lower cost way to create AI models has made software stocks a hot trade. The sudden emergence of DeepSeek’s model at first sent stocks with deep ties to the AI revolution into a nose dive on concerns that efficiency improvements could lead to reduced hardware spending.