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The arrival of a previously little-known Chinese tech company has attracted global attention as it sent shockwaves through Wall Street with a new AI chatbot.

On Monday, DeepSeek, a tiny company which reportedly employs no more than 200 people, caused American chipmaker Nvidia to have almost $600bn wiped off its market value – the biggest drop in US stock market history.

The Chinese AI chatbot threatens the billions of dollars invested in AI while causing US tech stocks to lose well over $1trn (£802bn) in value, according to market analysts.

DeepSeek, which has developed two models, V3 and R1, is now the most popular free application on Apple’s App Store across the US and UK.

What’s DeepSeek?

The startup was founded in 2023 in Hangzhou, China, by Liang Wenfeng, who previously co-founded one of China’s top hedge funds, High-Flyer.

The fund had by 2022 amassed a cluster of 10,000 of California-based Nvidia’s high-performance A100 graphics processor chips that are used to build and run AI systems, according to a post that summer on Chinese social media platform WeChat.

More on Artificial Intelligence

Former US President Joe Biden’s administration restricted sales of those chips to China soon after, something likely to be pursued by his successor, Donald Trump, who was recently sworn in for a second term in the White House.

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China’s DeepSeek should be a ‘wakeup call’

Why all the attention now?

The hype – and market turmoil – over DeepSeek follows a research paper published last week about the R1 model, which showed advanced “reasoning” skills.

They include the ability to rethink its approach to a math problem while, depending on the task, being 20 to 50 times cheaper to use than OpenAI’s o1 model, according to a post on DeepSeek’s official WeChat account.

That’s why there are fears it could undermine the potentially $500bn AI investment by OpenAI, Oracle and SoftBank that Mr Trump has touted.

What’s so cool about it?

As Morgan Brown, vice president of product and growth in artificial intelligence at Dropbox, put it, it is currently “insanely expensive” to train top AI models.

“DeepSeek just showed up and said ‘LOL what if we did this for $5M instead?’

“And they didn’t just talk – they actually DID it. Their models match or beat GPT-4 and Claude on many tasks. The AI world is (as my teenagers say) shook,” he said in a post on X.

So how much did it cost?

The company wrote in a paper last month that the training of DeepSeek-V3 required less than $6m (£5m) worth of computing power from Nvidia H800 chips.

How has President Trump responded?

Speaking to House Republicans on Monday, the 78-year-old Republican called the development a “wakeup call for our industries that we need to be laser-focused on competing to win”.

But Mr Trump signed an order on his first day in office last week that said his administration would “identify and eliminate loopholes in existing export controls”, signalling that he is likely to strengthen Mr Biden’s approach.

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Venture capitalist Marc Andreessen, who has advised Mr Trump on tech policy, has warned overregulation of the AI industry by the US government will hinder American companies and enable China to get ahead.

“Deepseek R1 is AI’s Sputnik moment,” said Mr Andreessen in a recent post on X, referencing the 1957 satellite launch that set off a Cold War space exploration race between the Soviet Union and the US.

What are the concerns?

Some people expressed their reservations about the Chinese company and its handling of users’ data.

Too controversial?

People have also been flagging how, when it comes to questions about alleged wrongdoing and human rights abuses at the hands of the Chinese government, the app seems unable to respond.

Seemingly controversial topics include Taiwan, which China claims as its own, the 1989 Tiananmen Square protests and massacre as well as China’s treatment of its Uyghur population, which the UN has previously said “may constitute crimes against humanity”.

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Nicusor Dan beats hard-right favourite George Simion in surprise win in Romanian election

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Nicusor Dan beats hard-right favourite George Simion in surprise win in Romanian election

Pro-Western candidate Nicusor Dan has unexpectedly beaten hard-right populist George Simion in the Romanian presidential election.

Mr Simion, 38, and his rival – a centrist who’s mayor of Bucharest – faced off in the second round of the contest.

According to the official tally, Mr Dan was leading by nearly nine percentage points with more than 98% of the votes counted.

A view of electoral posters featuring presidential candidates Nicusor Dan and George Simion. Pic: Reuters
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Pic: Reuters

Nicusor Dan and his supporters celebrated the exit polls. Pic: Reuters
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Mr Dan and his supporters celebrated the exit polls. Pic: Reuters

After exit polls suggested he wasn’t going to win, Trump-supporting Mr Simion rejected the result and said estimates put him 400,000 votes ahead.

Speaking after voting ended, Mr Simion said his election was “clear” as he posted on Facebook: “I won!!! I am the new President of Romania and I am giving back the power to the Romanians!”

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George Simion on Trump, the EU – and his message to UK

Romania’s last election was annulled after its highest court ruled the leading candidate, nationalist Calin Georgescu, should be disqualified due to claims of electoral interference by Russia.

The result is surprising because in the first round, 38-year-old Mr Simion, founder of the right-wing Alliance for the Unity of Romanians (AUR), took 40.96% of the vote – almost 20 points ahead.

George Simion rejected the polls but official counting saw him slip behind. Pic: Reuters
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George Simion rejected the polls but official counting saw him slip behind. Pic: Reuters

Supporters of Mr Dan celebrated on the streets of the capital Bucharest. Pic: AP
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Supporters of Mr Dan celebrated on the streets of the capital Bucharest. Pic: AP

An opinion poll on Friday had it much closer, but still suggested the two men were virtually tied.

Mr Dan, a 55-year-old mathematician, is running as an independent and has pledged to clamp down on corruption.

He is also staunchly pro-EU and NATO, and has said Romania’s support for Ukraine is vital for its own security.

When voting closed at 9pm local time, 11.6 million people – about 64% of eligible voters – had cast ballots. About 1.64 million Romanians living abroad also took part.

About 11.6 million people - 64% of eligible voters - cast ballots. Pic: AP
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About 11.6 million people – 64% of eligible voters – cast ballots. Pic: AP

Read more from Sky News:
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The election is being closely watched across Europe amid a rise of support for President Donald Trump.

After polls closed, Mr Dan said “elections are not about politicians” but about communities and that in the latest vote “a community of Romanians has won, a community that wants a profound change in Romania”.

“When Romania goes through difficult times, let us remember the strength of this Romanian society,” he said.

“There is also a community that lost today’s elections. A community that is rightly outraged by the way politics has been conducted in Romania up to now.”

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Israel to allow ‘basic quantity of food’ into Gaza to avoid ‘starvation crisis’

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Israel to allow 'basic quantity of food' into Gaza to avoid 'starvation crisis'

Israel has said it will allow a “basic quantity of food” into the besieged enclave of Gaza to avoid a “starvation crisis” following a near three-month blockade.

Israeli Prime Minister Benjamin Netanyahu’s office said the decision was “based on the operational need to enable the expansion of the military operation to defeat Hamas”.

Gaza, where local authorities say more than 53,000 people have died in Israel’s 19-month campaign, has been under a complete blockade on humanitarian aid since 2 March.

It comes as global food security experts warn of famine across the territory and after a UN-backed report issued last Monday which warned one in five people in Gaza were facing starvation.

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Israel ramps up bombing in Gaza

The statement from the prime minister’s office said it would “allow a basic quantity of food to be brought in for the population in order to make certain that no starvation crisis develops in the Gaza Strip”.

“Such a crisis would endanger the continuation of Operation ‘Gideon’s Chariots’ to defeat Hamas,” it added.

“Israel will act to deny Hamas’s ability to take control of the distribution of humanitarian assistance in order to ensure that the assistance does not reach the Hamas terrorists.”

More on Gaza

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Gaza is ‘a slaughterhouse’ says surgeon

It comes after a British surgeon working in Gaza said in a video to Sky News the enclave is now “a slaughterhouse” amid Israeli bombardment.

Israel has just ramped up its offensive in Gaza, with Palestinian health officials reporting at least 130 people were killed overnight into Sunday.

Israel Defence Forces (IDF) confirmed troops had begun “extensive ground operations throughout the northern and southern Gaza Strip”.

The Hamas-run health ministry in Gaza said 464 people had died in Israeli military strikes in the week to Sunday.

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In a statement on Sunday, IDF said its air force struck “over 670 Hamas terror targets throughout the Gaza Strip to disrupt enemy preparations and support ground operations” over the past week.

Israel has launched an escalation to increase pressure on Hamas, seize territory, displace Palestinians to the south and take greater control over the distribution of aid.

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British surgeon working in Gaza says it is now ‘a slaughterhouse’ amid Israeli bombardment

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British surgeon working in Gaza says it is now 'a slaughterhouse' amid Israeli bombardment

A British surgeon working in southern Gaza has compared the region to a “slaughterhouse” because of the daily bombardment from Israeli forces.

Dr Tom Potokar, who is based at the European Hospital near Khan Younis in southern Gaza, offered his assessment of Israel’s military offensive after Palestinian health officials reported at least 130 people were killed overnight into Sunday.

Israel Defence Forces (IDF) have confirmed their troops have begun “extensive ground operations throughout the northern and southern Gaza Strip”.

In a video, Dr Potokar said it was “another day of devastation here in Gaza”, adding: “The stories coming from the north… absolutely horrific… particularly around the Indonesian Hospital.”

“I mean, it’s difficult to describe in words what’s happening here… [with the] constant sound of bombardment jets overhead.

“If Cambodia was the killing fields, then Gaza now is the slaughterhouse.”

Mourners react during the funeral of Palestinians killed in Israeli strikes, at Al Shifa hospital, in Gaza City, May 18, 2025. REUTERS/Mahmoud Issa
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Mourners at a funeral of Palestinians killed in Israeli strikes, at Al Shifa hospital, in Gaza. Pic: Reuters

His reference to Cambodia’s killing fields refers to when more than a million people were murdered in mass executions and buried by the extreme communist guerrilla group, the Khmer Rouge, under Pol Pot, between 1975 and 1979.

More on Benjamin Netanyahu

The Hamas-run health ministry in Gaza said 464 people had died in Israeli military strikes in the week to Sunday.

In a statement on Sunday, IDF said its air force struck “over 670 Hamas terror targets throughout the Gaza Strip to disrupt enemy preparations and support ground operations” over the past week.

A woman reacts during the funeral of Palestinians killed in Israeli strikes, at Al-Aqsa Martyrs hospital, in Deir Al-Balah in the central Gaza Strip, May 18, 2025. REUTERS/Ramadan Abed TPX IMAGES OF THE DAY
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A family in grief at a funeral on Sunday in Deir al Balah, central Gaza. Pic: Reuters

Dr Potokar described the impact on those on the ground, saying: “We’ve been operating all morning so far and [treating] awful explosive injuries… [including] one young woman with leg fracture and shoulder fracture and a large wound on her buttock, who came in yesterday and is not yet aware that everyone in our family was killed in the onslaught.”

Israel has launched an escalation of its war in Gaza to ramp up pressure on Hamas, seize territory, displace Palestinians to the south and take greater control over the distribution of aid.

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Israel ramps up bombing in Gaza

On Sunday, it announced and launched “extensive” new ground operations in Gaza.

It came after airstrikes killed more than 100 people, including dozens of children, overnight and into Sunday, hospitals and medics said, and forced northern Gaza’s main hospital to close.

A spokesperson for the Hamas-run health ministry in Gaza said: “Complete families were wiped off the civil registration record by Israeli bombardment”.

The ministry also said the bombardment had forced the closure of the Indonesian Hospital, the main hospital serving people in northern Gaza.

Nasser hospital, in the southern city of Khan Younis, said more than 48 people – mostly women and children – were killed in the area which includes tents sheltering displaced people.

In Deir al Balah, in central Gaza, at least 12 people were killed in three separate strikes, according to Al Aqsa Martyrs Hospital and the Nuseirat camp’s Awda Hospital.

Meanwhile, the Gaza health ministry and the Palestinian Civil Defence – which operates under the Hamas-run government – reported that 19 people were killed in several strikes in Jabalia in northern Gaza.

The Israeli military had no immediate comment on the strikes.

Read more from Sky News:
How Israel has escalated Gaza bombing campaign

Ceasefire talks are taking place in Qatar this weekend – with Israel saying they involve discussions on ending the war as well as a truce and hostage deal.

A statement from the office of Israeli Prime Minister Benjamin Netanyahu said any lasting truce must include the demilitarisation of Gaza as well as the exile of Hamas militants.

But a senior Israeli official added there had been little progress so far during talks in Qatar’s capital Doha.

Sky News Arabia reported Hamas had proposed freeing about half its Israeli hostages in exchange for a two-month ceasefire and the release of Palestinian prisoners held by Israel.

A Palestinian official close to the discussions said: “Hamas is flexible about the number of hostages it can free, but the problem has always been over Israel’s commitment to end the war.”

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