Stunning AI advances from Chinese startup DeepSeek have sent tech stocks tumbling across the US and Europe.DeepSeek released a free chatbot and new open-source AI models last week. Within days, the chatbot had overtaken ChatGPT to reach the top spot on the Apple App Stores free app rankings.The new R1 models sent further shockwaves through the AI world. R1 promised performance to rival OpenAI tops reasoning model at just a fraction of the cost. Marc Andreessen, one of the worlds most powerful VCs, called the release AIs Sputnik moment.The markets were also astounded. Shaken by the threat of a powerful, low-cost AI challenger from China, shares in US tech titans plummeted on Monday. Chip designer Nvidia set an alarming example. The chip designer suffered the largest rout in stock market history.The of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!European semiconductor firms were also hit hard. Shares in Dutch chip leader ASML the continents most valuable public tech company slumped by as much as 12%.Semiconductor firms Besi and Asm International also endured double-digit drops. Yet chip companies were not the only European businesses to feel a painful impacts.The continents power equipment makers were also clobbered. Stocks plummeted particularly sharply at Germanys Siemens Energy and Frances Schneider Electric.Amid the market torment, DeepSeek has also sparked excitement. By offering powerful yet affordable open-source models, the startup could accelerate the spread of AIs benefits across the world. For the sectors established leaders, however, the landscape has been shaken. Story by Thomas Macaulay Managing editor Thomas is the managing editor of TNW. He leads our coverage of European tech and oversees our talented team of writers. Away from work, he e (show all) Thomas is the managing editor of TNW. He leads our coverage of European tech and oversees our talented team of writers. Away from work, he enjoys playing chess (badly) and the guitar (even worse). Get the TNW newsletterGet the most important tech news in your inbox each week.Also tagged with