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.

Two U.S. Congress members are calling on President Donald Trump's administration to consider restricting the export of artificial intelligence chips made by Nvidia , alleging Chinese AI firm DeepSeek has relied on them.

Nvidia said in a statement it is "ready to work with the administration as it pursues its own approach to AI."

US President Donald Trump has called Chinese AI start-up DeepSeek's strong showing a "wake-up call" and "positive" for America's tech sector, and also warned that he would slap tariffs on foreign-made semiconductor chips,

These days, nothing is certain about the tech market or the world at large. Even Nvidia's seemingly bulletproof stock took a hammering on Monday, enduring

The Chinese start-up DeepSeek’s latest large language model has been described as a ‘Sputnik moment’ for the American tech industry

However, discussions on the matter are currently at an early stage as the new team works through policy priorities

The Trump administration is reportedly considering expanding the bans and sanctions against China, which could mean that the Nvidia H20 chip will no longer be legal to sell in the country.