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       The New York Stock Exchange last week.Credit...Seth Wenig/Associated Press

       China’s A.I. advances rattled the markets Stocks sank yesterday in the U.S. as investors were shaken by the advances of the Chinese A.I. company DeepSeek. Primarily driven by tech stocks, the sell-off also dented market indexes in Europe and Japan.

       DeepSeek claims to have matched the abilities of cutting-edge chatbots while using far fewer specialized computer chips. That threatens the power and prospects of tech giants in the U.S. and elsewhere.

       The chipmaker Nvidia plunged more than 16 percent yesterday, erasing hundreds of billions of dollars in market value. The Nasdaq dropped about 3 percent.

       Jason Karaian, our deputy Business editor, told me that analysts were calling DeepSeek’s emergence a “slap in the face” for investors, who may now be reassessing their expectations for big returns from the A.I. race. Here’s what to know about DeepSeek.

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       Tech competition: Last week, President Trump signed an executive order intended to speed the development of A.I., as the U.S. tries to maintain dominance in the field. DeepSeek’s apparent advances, despite U.S. efforts to limit the sales of powerful chips to China, “was as much a jolt to Washington as to Wall Street,” Jason said.

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